A major implication of asymmetric information is that:
A. health care suppliers may reduce the supply of health care.
B. health care suppliers may increase the demand for health care.
C. collusion between health care suppliers and purchasers may accelerate the rise in costs.
D. resources may be underallocated to the health care industry.
Answer: B
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Land suitable for growing wheat can also be used to farm dairy cattle. Therefore, from the farmer's perspective, an increase in the price of wheat tends to
A) reduce the demand for wheat. B) increase the demand for dairy cattle. C) decrease the cost of farming dairy cattle. D) increase the cost of farming dairy cattle.
Why does the short-run aggregate supply curve slope upward?
What will be an ideal response?
A less costly alternative to protection of national defense industries would be a production subsidy
Indicate whether the statement is true or false
Which of the following groups of people would most likely pay a higher percentage of their wages on excise tax?
a. doctors earning $400,000 per year b. engineers earning $95,000 per year c. teachers earning $55,000 per year d. cashiers earning $25,000 per year