When neither the patient nor the doctor is cost conscious as a result of health insurance, economists label this the
A. efficiency outcome.
B. moral hazard problem.
C. risk neutrality.
D. the insurance fiasco.
Answer: B
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Why do purely technological theories have difficulty explaining recessions in which real GDP falls?
What will be an ideal response?
Refer to above Table 2-2. What is the increase in real GDP between years 1 and 2 at fixed year 2 prices?
A) 2.1% B) 5.1% C) 4.4% D) 3.3%
What is the most powerful influence determining the level of national income equilibrium? Unlike Alfred Marshall who used the scissors metaphor to show that both supply and demand are equally involved in determining equilibrium price, Keynes argued that
a. aggregate expenditure is the most powerful influence on national income determination b. aggregate supply is the most powerful influence on national income determination c. aggregate saving is the most powerful influence on national income determination d. government expenditure is the most powerful influence on national income determination e. consumption is the most powerful influence on national income determination
The absolute value of the price elasticity of demand for a downward-sloping linear demand curve
A. increases as price decreases. B. is zero at all prices. C. decreases as price decreases. D. is unitary at all prices.