Willingness to pay represents:
A. the point at which the benefit that a person will get from a good is equal to the benefit of spending the money on the next best alternative.
B. the opportunity cost of a good.
C. the buyer's reservation price.
D. All of these represent willingness to pay.
D. All of these represent willingness to pay.
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Which of the following is not part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (ACA)?
A) In 2016, fines for not having health insurance are the greater of $695 per person or 2.5 percent of income. B) With limited exceptions, every resident of the United States is required to have health insurance that meets certain basic requirements. C) Individuals who do not acquire health insurance will be subject to a fine. D) Individuals are allowed to opt out of the insurance program if they can prove they have no serious health issues.
A utility function is a mathematical function that assigns values to consumption bundles to represent the:
A. consumer's income. B. consumer's preferences. C. marginal rate of substitution. D. prices of the goods in the consumption bundle.
Suppose that an international incident occurs that creates uncertainty in the market. It is likely that this incident will ________ the level of private investment spending.
A. increase B. decrease C. neutralize D. not affect
Suppose the federal government is considering alternatives to increase the level of real GDP in order to reduce unemployment. It can only do one of the following. Which will have the smallest impact on the federal budget?
a. decreasing transfer payments b. increasing government spending c. increasing transfer payments d. decreasing government spending