One reason the Medicare system costs so much is
A. the supply of medical services does not respond to price changes.
B. the amount of medical services is determined by the equilibrium of supply and demand.
C. supply and demand analysis does not apply.
D. beneficiaries are entitled to receive services for which the per-unit cost exceeds their own personal out-of-pocket payment.
Answer: D
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If workers and firms expect that inflation will be 5 percent next year, and real wages are not changing over time, by how much will nominal wages increase?
A) less than 5 percent B) more than 5 percent C) 5 percent D) depends on actual inflation for next year
On the graph above, for a while after t = 0, the growth rate of technology is ________ the growth rate prior to time zero, and ________
A) below; falling B) below; rising C) above; constant D) above; falling
The cartel consisting of Firm A and Firm B can become unstable if: a. the cost of production is identical for the two firms
b. the cost of production of Firm A is lower than that of Firm B. c. the cost of labor in the industry increases by 12 percent. d. both firms switch to a better method of production.
When a trading opportunity is presented to a heterogeneous group of potential traders, those who accept it will be often
A. smarter, on average, than those who do not accept it than those who do not. B. better, on average, than those who do not accept it. C. worse-on the average, than those who do not accept it. D. no different than those who do not.