A person who takes less care of his health after obtaining a health insurance is creating a negative externality
a. True
b. False
Indicate whether the statement is true or false
False
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As a curve approaches a maximum point, the slope will
A) be positive, then negative after the maximum point. B) be negative, then positive after the maximum point. C) remain constant on either side of the maximum point. D) increase before and after the maximum point.
The income that includes a household's earnings in addition to cash transfers from the government is called
A) market income. B) real income. C) money income. D) cash income.
Refer to Figure 15-9. In the figure above suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an increase in the required reserve ratio B) a decrease in income taxes C) an open market sale of Treasury bills D) an open market purchase of Treasury bills
ZappIt Co produces limited edition action figures and is willing to receive $100 per figure. In 2015, the market price for an action figure went up from $125 to $150 . In 2016, the market price for an action figure decreased from $150 to $130 . The producer surplus received by ZappIt Co _____
a. increased in 2015, but decreased in 2016 b. decreased in both 2015 and 2016 c. decreased in 2015, but increased in 2016 d. increased in both 2015 and 2016