Answer the following statements true (T) or false (F)
1) Asymmetric information in the health care market has increased the supply of health care.
2) A moral hazard problem arises in the health care market because health insurance
encourages people to overconsume health care.
3) Insurance companies use deductibles and copayments to control increases in the amount of
health care demanded.
4) Because employer payments for health insurance are not subject to income or payroll taxes,
government in effect provides a subsidy to health care.
1) F
2) T
3) T
4) T
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Which of the following are liabilities to a bank?
A. vault cash and demand deposits B. property and capital stock C. capital stock and reserves D. demand and time deposits
In 1966, the Catholic Church eliminated the centuries-old requirement that members abstain from eating meat on Fridays. Catholics customarily ate fish on Friday. Following the removal of this requirement, it was found that the
A. demand curve for fish shifted to the right. B. demand curve for fish shifted to the left. C. demand for meat decreased. D. price of fish increased.
Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. A combination of 9 pillows and 21 blankets would appear
A) along Billie's production possibilities frontier. B) inside Billie's production possibilities frontier. C) outside Billie's production possibilities frontier. D) at the vertical intercept of Billie's production possibilities frontier.
According to the graph shown, the monopolistically competitive firm will produce:
These are the cost and revenue curves associated with a monopolistically competitive firm.
A. where MR = MC and will charge according to ATC.
B. where MR = MC and will charge according to D.
C. where D = MC and will charge according to MR.
D. where D = MC and will charge according to ATC.