Refer to the figure that shows the market for U.S. health care. The problem of rapidly rising medical care costs is best illustrated by the shifts of the demand and supply curves from D 1 to:
A. D 2 and S 1 to S 2 .
B. D 2 and S 1 to S 3 .
C. D 3 and S 1 to S 2 .
D. D 3 and S 1 to S 3 .
C. D 3 and S 1 to S 2 .
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According to the graph above, the expansion that began in December 1914 had a duration of ________
A) 51 months B) 4 years C) 3 years D) 44 months E) 20 months
Assume that the riskiest individuals in a given population are the ones most likely to apply for health insurance. In this situation a provider of health insurance faces the problem of ________
A) moral hazard B) opportunity costs C) tertiary impedence D) adverse selection
Which of the following occurs when investment is crowded out by government spending?
A) interest rates fall B) the amount of borrowing by the government falls C) the amount of government debt rises D) consumption increases
Which phrase would be most characteristic of pure monopoly?
A. Close substitutes B. Efficient advertiser C. Price taker D. Sole seller