Examine the effect Medicare and Medicaid have on the bills patients with private health insurance pay
What will be an ideal response?
Medicare and Medicaid set their payment rates below the average total cost of the service. The government is a significant buyer of health services, this allows them to pay the amount they determine “acceptable” for the service. They set this price above marginal cost, but below average total cost. The result is patients with private health insurance paying for more than their share of the fixed costs.
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Lowering the discount rate has the effect of ________.
A. forcing commercial banks to call in outstanding loans from their best customers B. turning required reserves into excess reserves C. turning excess reserves into required reserves D. making it less expensive for commercial banks to borrow from central banks
Under the monetary growth rule proposed by the monetarists, the money supply would grow each year at a constant rate equal to the long-run rate of growth of
A) employment. B) inflation. C) interest rates. D) real GDP.
Fred has already paid $50 for a ticket to a football game that is sold out. Ann has offered Fred $90 for the ticket. That is the maximum offer Fred has received for the ticket. Assume the value or cost of Fred's time to go to the game is $60. What is Fred's opportunity cost of going to the game?
a) $50 b) $60 c) $90 d) $140 e) $150
Which of the following is not a basic market model?
A. Pure competition B. Free enterprise C. Oligopoly D. Monopoly