Health care costs have greatly increased in recent years in the United States. This fact alone does not establish an overallocation of resources to health care because:
A. the benefits of health care have also greatly increased in recent years.
B. rising medical care prices have inflated health care costs.
C. the marginal cost of health care exceeds the average total cost of health care.
D. negative externalities sometimes result from additional health care spending.
Answer: A
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A) The supply of feed corn will decrease. B) The cost of producing feed corn will increase. C) The price of feed corn will increase. D) All of the above.
In the Solow model, if f(k) = 2k0.5, s = 0.3, n = 0.05, and d = 0.15, what is the value of k at equilibrium?
A) 1 B) 3 C) 6 D) 9
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Answer the following statement true (T) or false (F)
The signaling theory of education suggests that when people earn a college degree they do not become more productive, but they do signal their high ability to prospective employers
a. True b. False Indicate whether the statement is true or false