Refer to the table shown that depicts a third-party payer market. What is the cost of this program to the third-party if a $1 co-pay is established?PriceQuantity DemandedQuantity Supplied$01,2000$1600150$2300300$30450$40600$50750$60900$701,050
A. $2,400
B. $0
C. $600
D. $1,800
Answer: D
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Economists generally advocate for the complete elimination of pollution
Indicate whether the statement is true or false
Suppose that you open your own business and earn an accounting profit of $35,000 per year. When you started your business, you left a job that paid you a $30,000 salary annually
Also, suppose that you invested $70,000 of your own funds to start up your business. If the normal rate of return on capital is 10 percent, your economic profit is A) $5,000. B) -$5,000. C) $2,000. D) -$2,000.
Suppose that Company A's railroad cars pass through Farmer B's corn fields. The railroad causes an externality to the farmer because the railroad cars emit sparks that cause $1,500 in damage to the farmer's crops. There is a special soy-based grease that the railroad could purchase that would eliminate the damaging sparks. The grease costs $1,200 . Suppose that the railroad is not liable for any
damage caused to the crops. Assume that there are no transaction costs. Which of the following characterizes an efficient outcome? a. The railroad will continue to operate but will pay the farmer $1,500 in damages. b. The railroad will purchase the grease for $1,200 and pay the farmer nothing because no crop damage will occur. c. The farmer will incur $1,500 in damages to his crops. d. The farmer will pay the railroad $1,200 to purchase the grease so that no crop damage will occur.
Haiti has a lower literacy rate (the percentage of those over 15 who can read and write) compared to other Latin American and Caribbean countries. Where does this low literacy rate fit into the factors that explain the wealth of nations?
A. It indicates that Haiti is short on human capital. B. It shows that it lacks entrepreneurship. C. It shows a lack of natural resources. D. It indicates that Haiti is short of physical capital.