Some economists and policymakers who are in favor of government-provided health care believe that providing health care will
A) create negative externalities. B) generate more adverse selection.
C) reduce asymmetric information. D) generate additional moral hazard.
C
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. To maximize total output, Jen should specialize in producing ________ while Rich should specialize in producing ________.
A. TVs; radios B. radios; TVs C. TVs; TVs D. radios; both goods
Which of the following pairs of terms refer to the same thing?
a. "capital" and "physical capital" b. "technological knowledge" and "human capital" c. "standard of living" and "human capital" d. "standard of living" and "productivity"
A production system where various workers concentrate on different specialized tasks to contribute towards a whole product is referred to as:
A. A coincidence of wants B. Roundabout production C. Freedom of enterprise D. Division of labor