Once the national health care program goes into effect and more people will pay fewer of their health care expenses out of their own pockets than they did previously, we can expect
A) the quantity of health care services demanded will increase.
B) the quantity of health care services demanded will decrease.
C) the quantity of health care services supplied will increase.
D) the quantity of health care services supplied will decrease.
Answer: A
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then:
a. inventory is depleted. b. inventory is accumulated. c. inventory is unchanged. d. employment increases.
An increase in government expenditures may lead people to expect that in the future taxes will rise and create greater distortions. By themselves these changes in expectations lead people to
a. raise both consumption and investment. b. raise consumption but reduce investment. c. raise investment but reduce consumption. d. reduce both consumption and investment.
Europe had refused to import genetically modified food products. The WTO ruled that:
a. if Europe was afraid of these products, it could put an import ban on them. b. Europe needed to base its ban on scientific evidence rather than because of fear about something unproven. c. Europe could declare a moratorium until an investigation could be undertaken. d. the products could be treated and then they would be safe.