Given the availability of the Medicaid program, why are so many poor people uninsured?
A. Because only a fixed percentage of the population can participate in Medicaid at any time.
B. Because many poor people earn enough that they do not qualify for Medicaid.
C. Because nonincome requirements screen many poor people from the program.
D. Because only native-born Americans are eligible for the program.
Answer: B
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Which of the following increases the size of the expenditure multiplier?
A) an increase in investment B) an increase in autonomous spending C) a decrease in the marginal propensity to consume D) a decrease in the marginal propensity to import E) an increase in the marginal income tax rate
Sandra consumes two goods–tea and coffee. Her demand for tea is inelastic while her demand for coffee is elastic. If there is an increase in the price of both tea and coffee, ________
A) Sandra's expenditure on both tea and coffee is likely to increase B) Sandra's revenue on both tea and coffee is likely to decrease C) Sandra's expenditure on tea will increase and her expenditure on coffee will decrease D) Sandra's expenditure on coffee will increase and her expenditure on tea will decrease
A firm might be tempted to cheat on a collusive price-fixing agreement by setting a ________ price and producing ________ than agreed upon
A) lower; more B) lower; less C) higher; more D) higher; less
Refer to Figure 2-11. Which country has a comparative advantage in the production of cashews?
A) Pakistan B) Indonesia C) They have equal productive abilities. D) neither country