When consumers pay only a fraction of the true cost of medical services, their demand increases. The marginal cost of producing these extra services
A) is greater than the marginal benefit consumers receive from them.
B) is less than the marginal benefit consumers receive from them.
C) is equal to the marginal benefit consumers receive from them.
D) is zero due to the insurance payments.
Answer: A
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Which of the following correctly ranks the amounts from largest to smallest?
A. total output, output per person, average labor productivity B. output per person, total output, average labor productivity C. total output, average labor productivity, output per person D. average labor productivity, output per person, total output
Answer the following statement true (T) or false (F)
1) The major expenditure of local governments is for education. 2) A tax is progressive if the average tax rate rises as income increases. 3) If you pay a $2,000 tax on $10,000 of taxable income and a $4,000 tax on a taxable income of $16,000, the tax is progressive. 4) The marginal tax rate is the tax rate that applies to additional income.
Suppose a perfectly competitive cotton farmer can produce 10 containers of cotton at an output at which marginal cost equals marginal revenue. The price per container of cotton is $100 and the average total cost is $75. What is the profit or loss that this cotton farmer is earning?
A. $250 B. $750 C. -$25 D. $150
"If the currency drain increases, the monetary base decreases." Explain whether the previous statement is correct or incorrect
What will be an ideal response?