Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients. This practice of self-referral is an example of:
a. adverse selection.
b. cognitive dissonance.
c. physician-induced demand.
d. moral hazard.
e. res ipsa loquitor.
c. physician-induced demand.
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According to which of the following models are economic agents assumed to have perfect information?
a. The new classical model b. The classical model c. The monetarist model d. The Keynesian model
Key assumptions behind the quantity theory of money include:
A. the change in nominal GDP is zero. B. the money supply is fixed. C. the percentage change in the price level equals the percentage change in real GDP. D. the velocity of money is constant.
Refer to the labor market in Figure 33.5. Suppose the government imposes a payroll tax on employers. How much of the tax burden is passed on to workers?
A. $8 - $7 = $1 per hour. B. $10 - $7 = $3 per hour. C. $7 per hour. D. $10 - $8 = $2 per hour.
The Mega automobile manufacturer is suffering higher costs due to rising steel prices. Which of the following actions could be considered collusive activity by Mega?
a. It decides to raise its prices after its competitors raise their prices. b. It meets with its rivals to develop a plan to increase prices. c. It predicts that its competitors will increase their prices. d. It meets with its suppliers to discuss the factors affecting steel prices.