All of the following factors lead to overconsumption of health care, except:
A. The practice of defensive medicine
B. Health insurance that pays most of the health care costs
C. Government tax subsidy on employer-financed health insurance
D. Rising incomes resulting from economic growth
D. Rising incomes resulting from economic growth
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Which of the following is NOT included in M1?
A) deposits in checking accounts B) deposits in checking accounts that pay interest C) savings accounts D) traveler's checks
In New York City, about 1 million apartments are subject to rent control by the local government. Rent control
A) puts a legal limit on the rent that landlords can charge for an apartment. B) is a government policy which limits apartment rental to those people whose incomes are less than $50,000 per year. C) is a price floor which sets a minimum rent for apartments. D) only applies to those apartments which are owned and rented out by the local government.
Some competitive firms are willing to operate at a loss, in the short run, because:
a. their average variable cost is less than the price. b. their fixed costs are less than their current losses. c. their average total cost is less than the price. d. they do not attempt to maximize profits or minimize losses. e. their revenues are at least able to cover their fixed costs.
A nation should specialize in the good for which it has an absolute advantage
Indicate whether the statement is true or false