Use the information provided in Table 7.2 below to answer the question(s) that follow.
Table 7.2Inputs Required to Produce a Product Using Alternative Technologies
Refer to Table 7.2. If the hourly price of capital is $30 and the hourly wage rate is $5, which production technology should be selected?
A. A
B. B
C. C
D. D
Answer: C
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Refer to the figure above. Which of the following explains the impact on the domestic buyers and sellers when the country opens to free trade?
A) Both the sellers and the buyers are made worse off. B) Both the sellers and the buyers gain. C) The domestic firms lose but the buyers gain. D) The domestic firms gain but the buyers lose.
In the United States, the bulk of health care spending is paid by health insurance companies
Such a system is also called a third-party payer system where consumers of health care pay a nominal fee and the rest are paid by the health insurance provider. Why might such a system lead to an inefficient outcome? A) Consumers fearing that excessive use of health care services may lead to a rise in insurance premiums tend to under-consume health care services. B) Health insurance companies have an incentive to control cost and therefore tend to deny consumers many cutting edge medical treatments. C) Consumers have an incentive to over-consume health care services because they pay prices well below the cost of providing these services. D) Physicians concerned that insurance companies may not approve payments tend not to order expensive tests for their patients.
If supply increases, the equilibrium price will rise and the equilibrium quantity will fall
a. True b. False Indicate whether the statement is true or false
Suppose the price elasticity of supply for Good A is 0.7 and the price elasticity of supply for Good B is 1.7 . Given these values, which of the following statements is accurate?
a. Good A has an inelastic supply curve, while Good B has an elastic supply curve. b. Good B has an elastic supply curve, while Good B has an inelastic supply curve. c. Both Good A and Good B have an elastic supply curve. d. Both Good A and Good B have an inelastic supply curve.