The growth of third-party payments (payments by insurers and the government) of healthcare services during the last four decades has been accompanied by
a. a reduction in expenditures on healthcare as a share of the economy.
b. an increase in the sensitivity of consumers to the prices of healthcare services.
c. persistent increases in the prices of healthcare services and rapid growth in the total expenditures on healthcare.
d. an increase in the incentive of suppliers to provide healthcare services at a low cost.
C
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Theory suggests that stock prices should be positively related to
A) government borrowing. B) the unemployment rate. C) the interest rate. D) the money supply.
Pooling independent cross sections across time is useful in providing precise estimators if _____.
A. the relationship between the dependent variable and at least some of the independent variables remains constant over time B. the relationship between the dependent variable and at least some of the independent variables is linear C. the relationship between the dependent variable and at least one of the independent variables changes over time D. the relationship between the dependent variable and at least one of the independent variables is positive
If inflation is correctly anticipated, those who buy government bonds will:
A. suffer losses because they will be compensated by lower interest payments. B. suffer losses regardless of inflation because interest paid on government bonds is set by Congress. C. not suffer losses because they will be compensated by higher interest payments. D. not suffer losses because inflation does not affect the purchasing power.
Political instability is an obstacle to development in:
A. both market and socialist economies. B. neither market nor socialist economies. C. market economies. D. socialist economies.