Which of the following is true?
a. The private market provides too much of goods that generate external benefits
b. In the case of external benefits, if we could add the benefits that are derived by non-paying consumers, the supply curve would shift to the right, increasing output.
c. In the case of external benefits, a tax equal to external benefits would result in an efficient level of output.
d. In the case of public goods, when people act as free-riders, some goods having benefits greater than costs will not be produced.
d
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When the consumption schedule is plotted on a graph,
A. consumption is on the horizontal axis and disposable income is on the vertical axis. B. consumption is on the horizontal axis and saving is on the vertical axis. C. consumption is on the vertical axis and saving is on the horizontal axis. D. consumption is on the vertical axis and disposable income is on the horizontal axis.
Continuing with the same family from the preceding question, suppose a risk neutral insurance company exists to provide vacation insurance. Suppose further that each vacation day requires a constant expenditure, and this expenditure is standard across everybody. This allows us to simplify the problem by considering all payments to be in terms of vacation days. What is the least the insurance
company would charge (in terms of vacation days)? a. 1 b. 2 c. 3 d. 4
The market supply curve for any product:
a. always depends on the market demand for that product. b. depends on the general income level of the consumers in the market. c. is a summation of individual firms' supply curves. d. equals the total revenue generated through sale of the commodity. e. is affected by the prices of related products.
The dominant factor affecting medical care delivery and finance in the 1980s was:
a. creation of Medicare and Medicaid. b. prospective payment for hospitals. c. the explosive growth of managed care. d. the Hill-Burton Act. e. ERISA.