The demand for health care in the U.S. is quite price-inelastic because of the following reasons, except:
A. People consider health care as a luxury
B. There are only a few, or no, substitutes
C. Most consumers do not shop around, preferring a long-term relationship with their doctors
D. Most patients have insurance, effectively removing their budget constraint for health care
A. People consider health care as a luxury
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In the market for loanable funds the price of the funds exchanged is
A) the price of bonds. B) the volume of bonds purchased. C) the volume of bonds sold. D) the interest rate.
Scarcity is a situation in which resources are limited in quantity and can be used in different ways.
Indicate whether the statement is true or false.
When PAE < Y the economic response for inventories should be:
A. there will be no change in inventories. B. inventories will increase. C. inventories should decrease initially and then sharply increase. D. inventories will decrease.
Laissez-faire economists believe:
A. government policies are largely ineffective in coordinating economic activity. B. government intervention in the market is necessary for a smoothly operating economy. C. most government policies would probably make things worse. D. government can implement policy proposals that have mostly positive impacts on the economy.