How does the tax code contribute to rising health care costs?
A. Since the tax code provides exemptions for research and development, it provides an incentive for businesses to develop high-tech and expensive new treatments.
B. Since services are not subject to state sales taxes, households tend to spend more of their money on health care services than on other goods.
C. Since health care purchases are subject to such high taxes, total spending on health care (including taxes) is quite high.
D. Since health insurance benefits are untaxed, workers have an incentive to receive more of their compensation in the form of health insurance benefits.
Answer: D
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A. cost-benefit principle. B. principle of comparative advantage. C. principle of increasing opportunity costs. D. scarcity principle.
Money functions as a(n)
A) medium of exchange. B) unit of account. C) store of value. D) all of the above.
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A) 0.01. B) 0.05. C) 0.15. D) 0.20.
In 2008, the Ace Card Company produced $10 million worth of playing cards. Because of strong consumer demand for their product in 2008, Ace sold $12 million worth of cards, reducing their inventories by $2 million. How much value did Ace add to GDP in 2008?
a. $2 million b. $8 million c. $10 million d. $12 million e. $14 million