Health care is generally considered a normal good. Briefly explain what you would expect to see happen to spending on health care over time, with health care being considered as a normal good
What will be an ideal response?
With a normal good, as income increases, spending on the good also increases. Since income levels tend to increase over time, you should expect to see spending on health care increase over time.
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Limit pricing is used primarily to:
A) discourage new firms from entering a market. B) reduce (limit) the profits of all of the firms in the industry. C) drive other firms out of a market. D) establish a minimum price all of the firms in the market will charge.
Productivity gains on southern cotton plantations were due to:
a. improved varieties of seeds. b. use of the gang system. c. longer work hours. d. All of the above. e. Both a and b are correct.
As methods of economic organization, the market and the public sector are similar in which of the following ways?
a. Income and power are distributed equally in both sectors. b. In both sectors, economic activity is undertaken only when it satisfies the criterion for economic efficiency. c. In both sectors, economic exchange is completely voluntary. d. Someone must cover the cost associated with the provision of scarce goods in both sectors.
If the CPI is now 325, by what percent did the price level rise since the base year?
Fill in the blank(s) with the appropriate word(s).