The formula for calculating the tax multiplier is
a. MPC/(1 - MPC)
b. MPC/(1 + MPC)
c. -MPC/(MPC - 1)
d. -MPC/(1 - MPC)
e. MPC + (1 - MPC)
D
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Health insurance plans which typically reimburse doctors mainly by paying ________ are known as health maintenance organizations
A) an escalating fee based on the number of patients being treated B) a fee for each individual service provided C) a fee for each individual office visit D) a flat fee per patient
One study found that unemployment is the economic term mentioned most often in U.S. newspapers
a. True b. False Indicate whether the statement is true or false
Those economists who argue that the European Union is not a true optimal currency area cite _______________ and __________________ as justifications for this position
A) differences in culture; decreased labor mobility B) differences in language; culture C) decreased labor mobility; language differences D) none of the above
The industry described in Figure 11-6
a. is not a natural monopoly because no firm would produce in the long run unless the government intervened in the market.
b. is not a natural monopoly because the average total cost curve is U-shaped.
c.is a natural monopoly because the economic profit is positive for a monopolist if the government doesn't intervene.
d. is a natural monopoly because price is less than average total cost at the output that would be produced by the industry under perfect competition.