In a market economy, ________ interact in markets to decide the answers to the fundamental economic questions
A) the judicial and legislative branches of the federal government
B) large corporations
C) households and firms
D) state and local governments
C
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In the figure above, if the government provides the efficient amount of education, what is the tuition?
A) $10,000 per year B) $14,000 per year C) $8,000 per year D) $6,000 per year
If a hospital knows that an insurance company will pay for most of a patient's bill, the hospital has more of an incentive to require additional medical procedures and tests, even if the patient may not require them. This is an example of
A) moral hazard. B) adverse selection. C) asymmetric information. D) the principle-agent problem.
Refer to the information provided in Table 21.1 below to answer the question(s) that follow. Table 21.1
Refer to Table 21.1. The value of government spending in billions of dollars is
A. 100. B. 200. C. 300. D. 500.
Refer to Figure 5-3. With insurance and a third-party payer system, the equilibrium quantity of medical services is
A) 400. B) 800. C) 1,200. D) > 1,200.