Doctors in private health care clinics provide better care than those in public clinics because:
A. they are better trained.
B. they have more incentive to practice good medicine.
C. their fixed salary is generally higher than the fixed salaries of public clinic doctors.
D. their facilities are generally much more updated than public facilities.
B. they have more incentive to practice good medicine.
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In order to increase the capital stock, society must divert ________ that could be otherwise used to increase the current supply of ________.
A. credit; labor B. money; labor C. money; consumer goods D. resources; consumer goods
If you are receiving $2,000 per year forever, the present value of that income stream when the prevailing interest rate is 7 percent is equal to
a. $20,000 b. $62,472 c. $100,087 d. $27,000 e. $28,571
If Coke and Pepsi are close substitutes, then if:
a. Coke raises its price, so will Pepsi. b. Coke raises its price, it will not lose customers to Pepsi. c. Pepsi lowers its price, it will not hurt Coke. d. Pepsi lowers its price, so will Coke. e. Coke raises its price, some customers will switch to Pepsi.
The growth-reducing effects of high public debt are transmitted entirely through high real interest rates on that debt
a. True b. False Indicate whether the statement is true or false