Does it make any difference whether health-care expenditures are paid for by the consumer or by a third party (the government or an insurance company, for example)?
a. No; the quantity of health-care service demanded is not influenced by either the price of health care or who is paying for it.
b. Yes; consumers of health care will have a stronger incentive to economize when they are buying the service with their own money.
c. Yes; consumers of health-care services will have a stronger incentive to economize when the services are paid for by a third party.
d. No; health care is an essential service, and therefore, the incentive to economize on it is unaffected by who is paying for the service.
B
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Suppose that the interest rate available to you on a long-term bond is 4 percent. If you hold $1,000 of your wealth in currency instead of in the form of a bond, the annual opportunity cost is
A) $0.04. B) $4. C) $40. D) $400.
An adverse supply shock will shift short-run aggregate supply
a. right, making prices rise. b. left, making prices rise. c. right, making prices fall. d. left, making prices fall.
Explain the differences between the price leadership model and collusive oligopoly.
What will be an ideal response?
Social Security taxes were and are progressive, meaning that the highest proportion is taxed from the highest incomes
Indicate whether the statement is true or false