Decisions about how to allocate resources are made by:
A. individuals.
B. businesses.
C. governments.
D. Decision about resource allocation are made by all of the above
D. Decision about resource allocation are made by all of the above
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Use the following graph to answer the next question.
In the diagram, the economy's relevant aggregate demand and long-run aggregate supply curves, respectively, are lines ________.
A. 2 and 4 B. 4 and 1 C. 4 and 2 D. 2 and 3
If capital is fixed, but a firm varies labor
A) the firm stays on the same isoquant. B) the firm moves to a new isoquant. C) the firm might move to a new isoquant, depending on how much labor is added. D) the firm's output will be dependent on the marginal rate of technical substitution.
Fishing, the lumber industry, tourism, and even city buildings in Canada are harmed by acid rain, most of which comes from the United States. According to the Coase theorem, the problem is
a. easy to solve because the United States and Canada are geographically close b. easy to solve because the United States and Canada are allies c. easy to solve because international property rights are recognized among capitalist countries d. hard to solve because international negotiations are more costly than domestic ones e. hard to solve because Canadians have property rights to clean, nonacidic rain
The expanded use of prospective payment in hospitals has changed the nature of competition in that market. Which of the following statements is true?
a. The switch to DRG payments in the 1980s has actually had little effect on competition because so much of hospital spending comes from the federal government. b. Because patients pay such a small percentage of hospital bills, prospective payment has had little effect on hospital operations. c. Savings from prospective payments are substantial and due primarily to fewer hospital admissions and shorter hospital stays. d. After an initial drop in operating margins shortly after the introduction of DRGs, Medicare margins have improved and most hospitals are generating 5-8 percent surpluses on all their Medicare business.