The real GDP data could be properly thought of as
a. an index of our economic well-being.
b. a measure of the total wealth of a nation.
c. an index of total output or productive activity.
d. an index that measures the size of government.
C
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Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?
A) reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future B) give every citizen a fixed amount of money that can only be spent on health care services C) standardize the tax treatment of employer-based health insurance benefits and private spending on health care D) nationalize health care so that all health services are government funded and operated
A decrease in ________ can put your job at risk if aggregate expenditures fall
A) consumer confidence B) the length of a business cycle C) the natural rate of unemployment D) the inflation rate
Answer the following statements true (T) or false (F)
1. If a firm cannot make a profit under conditions of perfect competition, it should shut down as soon as possible. 2. Allocative efficiency occurs when firms are producing the goods consumers most want and consumers pay a price equal to marginal cost. 3. Consumer surplus is the area above the demand curve and below the equilibrium price. 4. Producer surplus is the difference between the price the firm is willing to sell its goods and the price it actually receives.
The problem with the strategy of achieving credibility through reputation is that
A) reputations are rarely credible. B) reputations lack any commitment. C) serious costs may be incurred during the period in which reputation is established. D) rules always have a lower cost than reputations in maintaining credibility.