The figure above shows the market for polio vaccination in Africa
a) If the market is competitive and left unregulated, how many doses of vaccine will be administered?
b) If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost, what will happen to the number of doses administered? Why?
a) If the market is competitive and left unregulated, 4 million doses will be administered.
b) If the Foundation underwrites the cost of the vaccine, the marginal cost of the vaccine will drop. The result will be similar to a government subsidy: part of the price of the vaccine will be paid for by the Foundation.. The market's efficiency will be increased.
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Although economists generally favor a negative income tax, there is little political support for it
a. True b. False Indicate whether the statement is true or false
Rent controls are
A) when rents are set above the market clearing level to aid landlords. B) used to provide incentives to contractors to build new apartments. C) used to generate revenue for the local government. D) when rents are set below the market clearing level.
In the year 2015, the United States spent about
A) 17 percent of GDP on health care. B) 100 percent of GDP on health care. C) 6 percent of GDP on health care. D) 2 percent of GDP on health care.
Monopolies such as those created by copyrights and patents
A. inhibit but do not prevent innovation and authorship. B. lower prices. C. stifle innovation and authorship. D. are necessary to motivate innovation and authorship.