If the interest rate is 10 percent and a business pays $100,000 for a lease on a factory, the explicit costs are
A) $110,000.
B) $10,000.
C) $100,000.
D) $90,000.
C
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Health insurance plans which typically reimburse doctors mainly by paying a flat fee per patient are known as
A) fee-for-service plans. B) single-health-payer systems. C) preferred provider organizations. D) health maintenance organizations.
An example of an external cost of alcohol is the
A. emotional costs to the families of alcoholics. B. cost to alcoholics of going to rehabilitation clinics. C. cost to bars of hiring janitors to clean up after their customers. D. cost of producing whiskey.
The double taxation problem occurs because households pay taxes on dividends and capital gains from stock and corporations pay taxes on corporate profits
Indicate whether the statement is true or false
The U.S. fiscal stimulus in 2009 did not increase GDP substantially because
a. the Federal Reserve was decreasing interest rates and real world estimates for the multiplier might be less than one. b. the Federal Reserve was increasing interest rates and real world estimates for the multiplier might be less than one. c. state governments were decreasing spending and real world estimates for the multiplier might be less than one. d. state governments were increasing spending and real world estimates for the multiplier might be less than one.