Refer to the figure at right. Medicare subsidies have increased the price of medical services to Upper P Subscript s. Which of the following statements is true about the effect the Medicare subsidy has had on the consumption of medical services?
A. The amount of medical services provided has remained unchanged as a result of the subsidy.
B. The amount of medical services provided has increased from Upper Q 0 to Upper Q Subscript Upper M as a result of the subsidy.
C. The amount of medical services provided has increased from Upper Q Subscript d to Upper Q Subscript Upper M as a result of the subsidy.
D. The amount of medical services provided has decreased from Upper Q 0 to Upper Q Subscript d as a result of the subsidy.
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What characteristic of a competitive market has made the "long run pretty short" in the market for iPhone applications?
A) few firms in the market B) ease of entry C) blocked entry D) identical products
Refer to the graph shown.
A movement from points B to C represents a(n):
A. upturn. B. recession. C. peak. D. trough.
Universities are able to act as monopsonists in the market for professors because
A) a university usually does not consider hiring faculty members from another institution. B) faculty members usually have to move to a different city when changing universities. C) students like all of their professors. D) senior faculty members are willing to move to a new university at any cost.
In an economy without government or trade, it must be true that:
A. savings equals investment. B. consumption equals savings plus investment. C. consumption plus savings equal investment. D. consumption plus investment equal national savings.