An increase in business taxes would tend to:
A. increase aggregate demand and increase aggregate supply.
B. increase aggregate demand and decrease aggregate supply.
C. decrease aggregate demand and increase aggregate supply.
D. decrease aggregate demand and decrease aggregate supply.
Answer: D
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As the share of healthcare expenditures paid for by third parties has grown, both healthcare prices and total expenditures have increased rapidly. Is this surprising?
a. Yes; third-party payments provide healthcare consumers with a strong incentive to economize, and therefore, the growth of expenditures is particularly surprising. b. No; third-party payments weaken the incentive of healthcare consumers to economize, and therefore, the rapid growth of expenditures is an expected result. c. Yes; the price increases are surprising because healthcare suppliers have a strong incentive to provide the services at a low price when they are paid for by a third party. d. No; the growth of third-party payments will reduce the demand for healthcare, which will lead to both higher prices and expenditure levels.
Otherwise legal transactions that go unreported or unrecorded are called
a. the underground economy. b. the shadow economy. c. the informal economy. d. All of the above are correct.
In a foreign exchange market diagram with dollars per peso on the vertical axis, the quantity of __________ would be on the horizontal axis, and the U.S. demand for Mexican goods would help to determine the __________ curve
A) dollars; demand B) dollars; supply C) pesos; demand D) pesos; supply
Which of the following functions of government gives property owners the incentive to use their property efficiently?
A. making sure that courts are lenient on people who steal private property B. the enforcement of antitrust legislation C. the protection of property rights D. the financing of public goods