Why do societies need rationing devices?
A) Because people have too many needs and not enough wants.
B) Because price exists.
C) Because scarcity exists.
D) Because people have opportunity costs.
C
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Among the problems associated with subsidizing an industry in the hope of establishing a worldwide monopoly is that if two nations subsidize firms in the same industry, each could lose money
Indicate whether the statement is true or false
Suppose the marginal cost of producing a good falls so that the marginal social cost curve shifts downward. Then the efficient quantity to produce of that product
A) increases. B) does not change. C) decreases. D) could increase, stay the same, or decrease.
The term excess capacity refers to the fact that a firm produces a lower quantity than it would if it operated at the efficient scale
a. True b. False Indicate whether the statement is true or false
How different is medical care from other commodities? Arrow based his thesis on a number of characteristics that contribute to the unique nature of medical care. Which of the following characteristics was not one of those he lists?
a. Trust b. Asymmetric information c. Primary payment from insurance d. Preponderance of not-for-profit providers e. Barriers to entry