As we move down a straight-line demand curve, the price elasticity becomes
A. larger.
B. smaller.
C. larger and then smaller.
D. smaller and then larger.
Answer: B
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The welfare program economists believe to be most compatible with economic efficiency is
A. a regressive tax system. B. AFDC. C. a negative income tax. D. Medicare/Medicaid.
Pay-for-performance has sharply improved the quality of care.
a. true b. false
In a nation's balance of payments, which one of the following items is always recorded as a positive entry?
A. Changes in foreign currency reserves B. Purchases by foreign travelers visiting the country C. Imports of goods and services D. Military foreign aid supplied to allied nations
Refer to Figure 6.3. On this graph, area ABC is:
A. consumer surplus. B. producer surplus. C. total surplus. D. total producer net benefit.