The price of a good will fall when:
A. there is a shortage of the good.
B. there is a surplus of the good.
C. demand for the good increases.
D. the supply of the good decreases.
Answer: B
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Which of the following is not a characteristic of most less-developed countries?
a. Inadequate human capital b. High population growth rate c. Inadequate capital goods d. High productivity e. Inadequate water supplies
Unlike the Kyoto Protocol, the Copenhagen Accord will:
a. include India and China as participants. b. strongly curtail emissions. c. seek to reverse global warming d. be noncontroversial.
Medicare and Medicaid set their payment rates for medical services above marginal cost, but below average total cost. One major consequence of doing this is that hospitals and other providers are then:
A. Reducing the amount of health-care services they provide B. Passing the uncovered costs on to patients with private health insurance C. Denying services to many Medicare and Medicaid patients D. Filing for bankruptcy regularly
Refer to Figure 27-4. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?
A) an increase in the marginal income tax rate B) an open market purchase of Treasury bills C) an increase in interest rates D) an increase in transfer payments