The Affordable Care Act is intended to reduce the price of health care. A decrease in the price of health care may
A) increase the number of doctors office visits if office visits are considered an inferior good and the substitution effect dominates the income effect.
B) decrease the number of doctors office visits if office visits are considered an inferior good and the substitution effect dominates the income effect.
C) increase the number of doctors office visits if office visits are a normal good.
D) Both A and C.
D
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For a good such as a large screen HD television set, the income elasticity would likely be
A) negative. B) equal to zero. C) positive and less than one. D) positive and greater than one. E) undefined because large screen, HD TVs are bought by many consumers.
Growth in real GDP per hour worked in the United States was slowest during what period of time?
A) 1900-1949 B) 1950-1973 C) 1974-1995 D) 2006-2014
The natural rate of unemployment corresponds to what is sometimes called the full employment unemployment rate
a. True b. False Indicate whether the statement is true or false
The marginal productivity principle does not
A. assign higher prices to scarcer resources. B. create incentives for firms to discriminate.. C. guide firms to use society’s resources efficiently. D. distribute incomes unequally among society.