Relative to when a patient has first-dollar medical insurance, the loss in total economic surplus would be smaller if:
A. medical care providers had to pay the full marginal cost of medical care.
B. the patient had to pay at least some of the marginal cost of medical care.
C. the patient had to pay less of the marginal cost of medical care.
D. medical care providers had to pay more of the marginal cost of medical care.
Answer: B
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The larger the diameter of a natural gas pipeline is, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of one reason for
A. constant returns to scale. B. economies of scale. C. diminishing returns to scale. D. diminishing marginal returns.
You start with a $1,000 portfolio; it loses 50% over the next year, the following year it gains 50% in value. At the end of two years your portfolio is worth:
A. $1,000. B. $950. C. $750. D. $500.
When interest rates in the U.S. decline, we can expect net capital outflow to:
A. increase. B. be zero. C. decrease. D. be unaffected.
Increasing marginal returns are generally the result of _____.
a. ?labor unions b. ?the specialization and division of labor c. ?change in technology d. ?diseconomies of scale e. ?increasing costs