A problem with third-party financing of so much of health care is that
A. it causes the demand for medical services to increase, which causes health care costs to increase.
B. it reduces the quality of health care received by most people.
C. it discourages physicians from getting second opinions and running enough tests to be sure the right procedure is followed.
D. it discourages people from relying on the judgments of physicians in making decisions about health care.
Answer: A
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Proponents of the ________ model argue that the short-run supply curve is vertical
A) the monetarist model B) the new classical model C) the new Keynesian model D) the real business cycle model
Which of the following best describes disposable income?
a. Income after expenses and taxes b. Income after taxes c. Income after expenses d. Income after taxes and payroll deductions
The Tragedy of the Commons will be evident when a growing number of sheep grazing on the town commons leads to a destruction of the grazing resource. To correct for this problem, the town could
a. allow individual shepherds to choose their own flock sizes. b. internalize the externality by subsidizing the production of sheep's wool. c. auction off a limited number of sheep-grazing permits. d. wait until the market corrects the problem.
When the slope of the total production curve steepens, it means:
A. diminishing marginal product must hold. B. the marginal product must be decreasing. C. the marginal product must be increasing. D. None of these is true.