In addition to covering the costs of unpredictable events, health insurance typically covers many planned expenses, such as routine checkups, annual physicals, and the cost of vaccinations. Because of this, health insurance
A) encourages overuse of health care services.
B) generates an efficient quantity of health care services.
C) is not accepted by most doctors and hospitals.
D) discourages overuse of health care services.
A
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When compared with a perfectly competitive market with identical costs of production, a pure monopoly will produce ________.
A. more output and charge the same price B. less output and charge the same price C. less output and charge a higher price D. more output and charge a higher price
Which of the following statements is true?
A) If a bank lends a sum of $600 to a firm, the sum is a part of the bank's liability. B) If a bank lends a sum of $200 to a household, the sum is a part of the bank's liability. C) If a firm deposits a sum of $500 in a bank, the sum is a part of the bank's assets. D) If a firm deposits a sum of $500 in a bank, the sum is a part of the bank's liability.
Suppose that from a new checkable deposit, First National Bank holds two million dollars in vault cash, eight million dollars on deposit with the Federal Reserve, and one million dollars in required reserves
Given this information, we can say First National Bank has ________ million dollars in excess reserves. A) three B) nine C) ten D) eleven
If a competitive firm cannot earn profit at any level of output during a given short-run period, then which of the following is LEAST likely to occur?
A) It will shut down in the short run and wait until the price increases sufficiently. B) It will exit the industry in the long run. C) It will operate at a loss in the short run. D) It will minimize its loss by decreasing output so that price exceeds marginal cost.