In the fooling model, what is held constant along a SAS curve?
A) the expected price level
B) the nominal wage rate
C) the expected price level and the nominal wage rate
D) the real wage rate
E) the nominal and real wage rates
A
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Which of the following would not be studied in microeconomics?
A. How an early freeze in California will affect the price of fruit. B. Whether the federal budget should be balanced. C. Whether to study or watch TV tonight. D. How individual firms decide how much to produce.
The short-run aggregate supply curve shows a positive relationship between the price level and real GDP
Indicate whether the statement is true or false
In the United States, the bulk of health care spending is paid by health insurance companies
Such a system is also called a third-party payer system where consumers of health care pay a nominal fee and the rest are paid by the health insurance provider. Why might such a system lead to an inefficient outcome? A) Consumers fearing that excessive use of health care services may lead to a rise in insurance premiums tend to under-consume health care services. B) Health insurance companies have an incentive to control cost and therefore tend to deny consumers many cutting edge medical treatments. C) Consumers have an incentive to over-consume health care services because they pay prices well below the cost of providing these services. D) Physicians concerned that insurance companies may not approve payments tend not to order expensive tests for their patients.
Autonomous consumption is the level of consumption that is
A) consistent with the average standard of living. B) observed at the poverty line. C) independent of real income. D) available to someone earning the minimum wage.