The price of a new car is $40,000 while the price of a five-year old car of the same brand is $16,000. The next year the price of the new car increases to $44,000 and the price of a five-year old car of the same brand is $17,600
The relative price of the used car A) decreased by $2,400.
B) decreased by 10 percent.
C) increased by 10 percent.
D) remained constant at 0.4.
D
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A goal of market-based reforms of the health care system is to give patients an incentive to pay more attention to the prices of medical services. This would tend to ________ economic efficiency by ________ the costs of medical services
A) increase; increasing B) decrease; increasing C) increase; decreasing D) decrease; decreasing
Which of the following are not subsets of the ability-to-pay principle?
a. horizontal equity b. vertical equity c. diagonal equity d. beneficial equity
If a country places tariffs on imported goods, then
a. its currency appreciates which reduces exports. b. its currency appreciates which increases exports. c. its currency depreciates which reduces exports. d. its currency depreciates which increases exports.
Which of the following is a fundamental topic addressed by microeconomics?
A) whether to extend unemployment insurance B) determining how many new iPhones the Apple company should produce C) the level of inflation in the country D) the impact of interest rates on savings in the economy