What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery, and fewer doctors decide to enter the field of joint replacement surgery?
A) Demand will decrease, but this will not shift the supply curve.
B) Supply will decrease, but this will not shift the demand curve.
C) Demand and supply will both decrease.
D) Demand will decrease and supply will increase.
Answer: C
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A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
The above table shows the short-run total product schedule for the campus book store. What is the average product (AP) of the 4th employee?
A) 58 books sold B) 14.5 books sold C) 18 books sold D) 13.3 books sold
When the Federal Reserve increases the money supply, people spend more because interest rates fall
Indicate whether the statement is true or false
Unlike Classical growth theory, new growth theory emphasizes the importance of:
A. the law of diminishing marginal productivity. B. population growth. C. human capital. D. technology.