Government payment of a per-unit subsidy for medical care causes the out-of-pocket price that consumers pay for care to be
A) less than the price that producers receive for providing care.
B) greater than the price that producers receive for providing care.
C) greater than the market clearing price without the subsidy.
D) equal to zero.
A
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Black market transactions generally increase the deadweight losses created by restrictive government policies
Indicate whether the statement is true or false
To prevent obesity, the government may establish a tax on high caloric foods, such as twinkies. A twinkie tax will have the smallest impact on quantity demanded when the demand curve for twinkies is
A) perfectly elastic. B) perfectly inelastic. C) more elastic than the supply curve. D) both A and B.
The natural rate of unemployment is the desirable rate of unemployment for an economy
a. True b. False Indicate whether the statement is true or false
If the interest rate is 2.49 percent, then what is the present value of $5,000 to be received in 4 years?
a. $4,531.52 b. $4,878.52 c. $5,124.50 d. $5,516.91