"It is difficult to compare over time health care expenditures, costs, and output." Do you agree or disagree? Why?
What will be an ideal response?
Agree. First, expenditures and costs are not the same thing. A system like Britain's has lower expenditures but not necessarily lower costs since people spend more time waiting for services. Years ago, expenditures were much lower, partially because people suffered and died from ailments that now can be cured. Further, as improvements in health care permit longer lives, health care expenditures will increase. The interrelationships between health care, technology, costs, and expenditures are extremely complicated.
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A tax on sellers has what effect on a market?
A. Supply shifts vertically upward by the amount of the tax. B. Demand shifts vertically downward by the amount of the tax. C. Equilibrium price decreases and equilibrium quantity decreases. D. Equilibrium price decreases and equilibrium quantity increases.
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP remains the same and reserve-related (central bank) transactions becomes more negative (or less positive). b. Real GDP falls and reserve-related (central bank) transactions remains the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises and reserve-related (central bank) transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Small differences in annual growth rates of real GDP generate large differences in real GDP over time because of the:
A. importance of average labor productivity. B. diminishing returns to capital. C. limits of economic growth. D. power of compound interest.
Formal economic reasoning applied to situations in which decisions are interdependent is called:
A. competitive decision making. B. game theory. C. monopolistic decision making. D. economic decision making.