Refer to Figure 7-6. Answer the following questions:
1. What would be the equilibrium price and quantity if consumers had to pay the full price of medical services?
2. With insurance acting as a third-party payer, what price will consumers pay for medical service?
3. With insurance acting as a third-party payer, what price will doctors receive for medical service?
4. With insurance acting as a third-party payer, what will be the equilibrium quantity of medical services?
5. With insurance acting as a third-party payer, what will be the value of the deadweight loss?
1. $50; 400
2. $25
3. $70
4. 600
5. $4,500
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A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where
A) GNP is much larger than GDP. B) GDP is much larger than GNP. C) GDP is not comparable to GDP. D) GDP is equal to GNP.
Use the above figure. Refer to the above diagram where curves (a) through (d) are for four different countries. Income is equally distributed in
A) Country A. B) Country B. C) Country C. D) Country D.
Refer to Exhibit 6-2. The labor force participation rate in year 3 is
a. 12 1/2 percent. b. 70 percent. c. 80 percent. d. 30 percent. e. 50 percent.
The problem of political instability has been greatest in which continent?
A. South America B. Europe C. Asia D. Africa