Medicare is an example of a third-party payment for medical services that
A) causes providers to supply less of medical services than they would without the payment.
B) causes buyers to consume more of medical services than they would without the payment.
C) does not cause any change in the equilibrium position for medical services which existed without the subsidy.
D) causes the price of medical services to rise for the consumer once the payment is provided.
Answer: B
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Which of the following is a property of dummy variable regression?
A. This method is best suited for panel data sets with many cross-sectional observations. B. The R-squared obtained from this method is lower than that obtained from regression on time-demeaned data. C. The degrees of freedom cannot be computed directly with this method. D. The major statistics obtained from this method are identical to that obtained from regression on time-demeaned data.
Inefficiency occurs when an economy is operating outside its production possibilities curve.
a. true b. false
Which of the following is NOT a cause for real wage rigidity?
A. minimum-wage laws B. unemployment insurance C. union power D. efficiency wages
Which of the following events would cause a rightward shift in the market supply curve for automobiles?
A. A technological improvement that reduces the cost of production. B. A decrease in the number of sellers. C. An increase in the wages of autoworkers. D. A higher sales tax on automobiles.