A World Bank study found that charging user fees for medical treatment in developing countries
A. slightly increased treatment rates.
B. greatly increased treatment rates.
C. dramatically reduced treatment rates.
D. had no significant effect on treatment rates.
Answer: C
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A rise in the price level causes
A) a reduction in total planned real expenditures. B) an increase in aggregate demand. C) an increase in total planned real expenditures. D) a decrease in aggregate demand.
The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. Based on this information, the Bubby Gum company should
A) fire Joanne because she creates a loss for the firm. B) increase its demand for labor. C) decrease Joanne's wage rate because she is paid too much. D) keep Joanne because she creates a profit for the firm. E) None of the above answers is correct because more information about Joanne's real wage is needed to decide what to do.
Suppose that the basket of goods purchased by the typical consumer costs $188.80 this year and it cost $160 in the base year. The CPI in the base year would be
A) 85.11. B) 100.0. C) 118.0. D) 348.8.
An increase in government purchases, ceteris paribus, will
A) increase public saving. B) reduce investment. C) increase the supply of loanable funds. D) reduce real GDP.