In terms of an economy's production possibilities curve, a decrease in the level of human capital, ceteris paribus, will cause
A. An inward shift of the curve.
B. A movement along the curve.
C. A movement from the curve to a point inside the curve.
D. An expansion of the curve.
Answer: A
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Distinguish between cost-of-service regulation and rate-of return regulation. What problem is inherent in both types of regulation?
What will be an ideal response?
Entrepreneurs care about:
A. only themselves. B. profits and solving problems. C. profits and prices. D. only profits.
Inflation caused by a rise in per unit production costs is referred to as:
a. Unanticipated inflation b. Demand-pull inflation c. Hyperinflation d. Cost-push inflation
Figure 9.6 represents the market for health insurance. Suppose there are two types of consumers, low-cost consumers with $2,000 average medical expenses per year, and high-cost customers with $4,000 average medical expenses per year. The insurance companies estimate that 40% of its customers are high-cost type. If the insurance companies set the price equal to their average cost per customer, what is the insurance companies' average cost per customer ($Y)?
A. $4,000 B. $3,400 C. $2,800 D. $2,000