Monopolistic competition is inefficient because:
A. firms earn positive economic profits.
B. the firms' marginal costs and marginal revenues are not equal.
C. firms have excess capacity in the long run.
D. entry is difficult.
Answer: C
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Other things being equal, a national health insurance program would
A) generate higher life expectancies and lower infant mortality rates. B) generate lower life expectancies and higher infant mortality rates. C) increase total health care expenditures. D) increase the quality of life.
Which of the following describes human capital?
a. Education of workers b. Marginal productivity of workers c. Risk appetite of workers d. Gender and age of workers
Fiscal policy has shorter implementation lag times than monetary policy
Indicate whether the statement is true or false
The Case in Point on obesity argues that agricultural innovation led to:
A) the increase in the demand for food. B) the increase in the supply of food. C) higher food prices. D) B and C occurred.