Government payment of a per-unit subsidy for health care services causes the out-of-pocket price that consumers pay for care to be
A. less than the price that health care providers receive for providing care.
B. equal to zero.
C. greater than the price that health care providers receive for providing care.
D. greater than the market clearing price without the subsidy.
Answer: A
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The debate over how the government should respond to deep economic downturns may be easier to overcome if we focus on infrastructure spending because:
A. we have resolve the debate over infrastructure spending before we do anything else. B. there's broad agreement that the government should increase infrastructure spending. C. insufficient infrastructure spending is the root cause of most economic downturns. D. there's broad agreement that the government should decrease infrastructure spending.
Which of the following situations describing a resource allocation method most resembles the force method?
A) Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets. B) Lattes are sold at Starbucks. C) Food from the Weld County Food Bank is distributed to families in need. D) Mandy saved her allowance to buy a 12 pack of cream soda. When Mandy's brother saw the soda, he took four. E) Jose works at Intel. His manager tells him what work needs to be completed each month.
Compared to a direct cash transfer payment of an identical amount, food stamps make individuals who desire less food than the value of the food stamps _____
a. better off b. worse off c. indifferent between food and all other goods d. prefer food too all other goods on the margin
If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much would government spending have to change to generate this increase in real GDP?
A. $140 million. B. $100 million. C. $200 million. D. $400 million.