According to economic theory, what is the optimal percentage of GDP to be spent on medical care?
a. Whatever amount we are currently spending
b. 10 percent
c. 8 percent
d. 12 percent
e. No widely accepted way to determine the optimal percentage
e. No widely accepted way to determine the optimal percentage
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The budget line represents a consumer's preferences for a commodity
a. True b. False Indicate whether the statement is true or false
How does the tax code contribute to rising health care costs?
A. Since the tax code provides exemptions for research and development, it provides an incentive for businesses to develop high-tech and expensive new treatments. B. Since services are not subject to state sales taxes, households tend to spend more of their money on health care services than on other goods. C. Since health care purchases are subject to such high taxes, total spending on health care (including taxes) is quite high. D. Since health insurance benefits are untaxed, workers have an incentive to receive more of their compensation in the form of health insurance benefits.
Command-and-control policies usually:
A. result in higher costs for firms when compared to pollution taxes. B. don't raise prices as much to consumers as do pollution taxes. C. result in less pollution being produced than when pollution taxes are used. D. result in lower costs for firms when compared to pollution taxes.
Why is it important that the central bank be independent, or insulated from changes in political power?
What will be an ideal response?