In which of the following situations will the price of medical care decrease with an increase in its demand?
a. When the supply of medical care is the same as the demand for medical care
b. When there is an increase in productivity as a result of a technological advancement
c. When there is an increase in the price of resources used to produce medical care
d. When the supply of medical care increases more than the demand for medical care
e. When there is an increase in future profit expectations
d
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The figure above shows the market for annual influenza immunizations the United States. If there is NO external benefit from health care and the government does not intervene in the market, then the equilibrium price of immunizations is
A) $30. B) $20. C) $40. D) $60. E) $70.
Spending on education is likely to raise output per person by ________
A) increasing the productiveness of R&D B) by increasing the population C) increasing the fraction of the population engaged in productive activities D) increasing the saving rate
The use of hospitals today is dominated by
A) the elderly. B) immigrants. C) obstetrical care. D) the wealthy.
Under a laissez-faire system,
A. government organizes production and distribution of goods. B. a small bureaucracy of central planners tells firms what to produce and how to produce it. C. costs of production and consumers’ demands determine the output mix. D. firms try to produce the goods that they think are good for consumers.