Refer to the below graph of a hypothetical market for health care. The efficiency loss caused by the provision of health insurance covering four-fifths of the cost is:
A. $3,000
B. $6,000
C. $12,000
D. $24,000
C. $12,000
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Consider the currency market for British pounds and U.S. dollars. A decrease in the supply of British pounds results in a(n) ________ of the pound and a(n) ________ of the dollar.
A. appreciation; depreciation B. appreciation; appreciation C. depreciation; depreciation D. depreciation; appreciation
One of the most widely followed stock indexes in the United States is the Dow Jones Industrial Average. This index represents
A) the stock prices of 500 large U.S. firms. B) the stock prices of 30 large U.S. corporations. C) the stock prices of more than 4,000 U.S. firms. D) an over-the-counter market.
Any business wanting to attract financial capital must expect to
A) earn a positive economic profit. B) keep implicit costs as close to zero as possible. C) pay a normal rate of return. D) pay a below normal rate of return in order to make a positive rate of return itself.
If the nominal GDP were to increase, but the real GDP were to increase by less from one year to the next, we could conclude:
A. prices went up, but output stayed the same. B. prices stayed the same, but output went up. C. both prices and output went up. D. both prices and output stayed the same.