In the United States, consumers usually pay less than the true cost of medical treatment because of
A) adverse selection.
B) rising insurance premiums.
C) third-party payers.
D) rising insurance deductibles.
Answer: C
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The case on textbook publishers shows that
A) if imports are allowed, price discrimination is difficult or impossible. B) if imports are allowed, price discrimination is possible. C) publishers have a difficult time identifying the groups involved. D) publishers should not migrate to electronic textbooks.
If the aggregate supply curve is steep,
a. increased aggregate demand will not lead to higher prices. b. greater demand for labor will not cause significant wage increases. c. business firms are probably producing near capacity. d. All of the above are correct.
A differentiated product is one that:
a. is slightly different from the competitor's product, although it is a close substitute. b. is very different. c. is traded within firms and is not for sale in retail markets. d. has a shelf life of less than a year.
No clearly defined socially preferred outcome may result when majority voting on outcomes because
A) often voters don't understand the outcomes. B) voting may violate the independence of irrelevant alternatives. C) voting may lead to incomplete preferences. D) voting may lead to non-transitive preference.