The major economic effect of Medicare subsidies is
A) that the number of physicians has decreased since compensation is low.
B) to increase the price of medical services and reduce the quantity demanded.
C) to increase the price of medical services and increase the quantity demanded.
D) to lower the price of medical services and reduce the quantity demanded.
C
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In a closed economy, without the government:
A) savings equals net exports. B) consumption equals investment. C) consumption equals savings. D) savings equals investment.
The labor supply curve is backward bending because at higher wages the income effect eventually dominates the substitution effect
Indicate whether the statement is true or false
While labor unions tend to negotiate above-equilibrium wage rates for their members, they also tend to reduce the quantity of labor hired
Indicate whether the statement is true or false
Refer to the above figure. At a price of $10, excess quantity supplied equals
A) 0. B) 12. C) 15. D) infinity.