Requiring Medicare participants to pay a small fraction of the cost of their medical care
a. reduces the quantity of health care they demand to zero
b. has no effect on the amount of health care they consume, but does generate revenue for the government
c. reduces their utilization of health care without compromising their health
d. actually increases the amount of consumer surplus they receive
e. amounts to a significant burden for most of those participants
C
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Why do some firms choose not to file for a patent and instead try to keep the results of their research a trade secret?
A) because firms must disclose information about the product or process being patented in a patent application B) because a patent only gives the inventor exclusive rights to a product or process for 5 years C) because trade secrets provide the same exclusive legal rights to a product as a patent does D) because trade secrets are never divulged
The notion that lenders must select from a pool of bad credit risks, because the most undesirable borrowers are those that most actively seek out a loan is known as the ________
A) moral hazard problem B) ornamental torsion problem C) adverse selection problem D) asymmetric innovation problem
The demand by sterile couples for babies to adopt has grown rapidly, while the supply has dwindled because of improved contraception, liberal abortion laws, and an increase in the probability that unwed mothers will keep their children. It violates the law to sell human beings at any age, but for every twenty legal adoptions there seemingly is one baby sale at a price up to $50,000 . The generic
term economists apply to the market produced by this type of shortage is a. "black market." b. "white slave market." c. "the adoption market." d. "baby market."
Advocates of antipoverty programs claim that
a. the government has good information about what people are willing to pay to eliminate poverty. b. fighting poverty is a public good. c. private sector will incur higher costs than the public sector for these programs. d. All of the above are correct.