Refer to the below graph of a hypothetical market for health care. Assume that health insurance pays four-fifths the cost of health care. The consumer will end up consuming how many units of health care and pay (out-of-pocket) how much of it per unit?



A. 600 units, for $20 per unit



B. 450 units, for $40 per unit



C. 300 units, for $60 per unit



D. 450 units, for $80 per unit


A. 600 units, for $20 per unit

Economics

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In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. CheapFizz now has market power due to:

A. network economies in the consumption of soda. B. its exclusive ownership of an input. C. its exclusive license to sell soda. D. economies of scale in the production of soda.

Economics

In larger markets, the quest for profit by firms motivates them to be innovative and produce new and more appealing products

Indicate whether the statement is true or false

Economics

A small business owner earns $75,000 in revenue annually. The explicit annual costs equal $40,000. The owner could work for someone else and earn $20,000 annually. The owner's accounting profit is ________ and owner's economic profit is ________

A) $10,000, $10,000 B) $35,000, $10,000 C) $35,000, $55,000 D) $10,000, $55,000

Economics

International Trade in Goods

The Chapter focuses on specialization and trade. Use the internet to examine international trade across countries. Examine the Economic Report of the President. Click on the table for U.S. international trade in goods by area. Use the data in this table to create a bar graph showing trade between the United States and Canada, Japan, and Western Europe. Use one bar each to represent exports from the U.S. to each of the other countries and another bar for each import from the other countries to the U.S. Use this graph to answer the following.
  • Which country or region sells the most to the U.S.?
  • Which country or region purchases the most from the U.S.?
  • Why would industrial nations trade with each other? wouldn't they all have the same ability to specialize in hi-tech and high-skilled industries?

Economics