When an insurance company pays 20% of the bill for health care services, this
A. reduces demand and makes demand less elastic.
B. increases supply.
C. reduces demand.
D. makes demand less elastic.
Answer: D
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Refer to Figure 9-5. With the tariff in place, the United States consumes
A) 18 million pounds of coffee. B) 20 million pounds of coffee. C) 26 million pounds of coffee. D) 38 million pounds of coffee.
Real GDP =________ where the price level is the ________
A) Nominal GDP × Price level; GDP deflator B) Nominal GDP ÷ Price level; GDP deflator C) Nominal GDP ÷ Price level; CPI D) Nominal GDP × Price level; CPI E) none of the above
If the government imposes a price ceiling below the market equilibrium price, then:
a. c and d. b. there will be excess supply. c. there will be excess demand. d. the intent is to benefit consumers. e. the intent is to benefit producers.
The acronym MPC stands for:
A. marginal production cost. B. marginal propensity to consume. C. marginally perfect consumption. D. macro production cost.