If a health insurer charges a rate equal to the average cost of health care for the entire population, then it is likely that
A) everyone buys health insurance.
B) unhealthy people will not buy health insurance.
C) healthy people will not buy health insurance.
D) nobody will buy health insurance.
C
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In a competitive market with no externalities,
A) the consumer surplus is equal to zero because of competition. B) buyers cannot control the price, so the consumer surplus is zero. C) at the equilibrium price, marginal benefit exceeds marginal cost. D) at the equilibrium price, marginal benefit equals marginal cost. E) at the equilibrium price, the total amount of consumer surplus equals the total amount of producer surplus.
A reason why discretionary fiscal policy might move the economy away from potential GDP instead of toward potential GDP is that
A) economic forecasts consistently underestimate the impact of fiscal policy. B) it is difficult to know whether real GDP is above or below potential GDP. C) during a recession, politicians prefer increases in government spending over decreasing taxes. D) government programs automatically move real GDP away from potential GDP. E) government programs are always expansionary.
If demand is unit elastic, then a 10 percent increase in the price will lead to a 10 percent increase in quantity demanded
a. True b. False Indicate whether the statement is true or false
If the firm facing the demand curve P = 10 - Q still has zero marginal costs and is now a perfect price discriminator instead of a single price monopolist, what will profits be if fixed costs are 12? 
A. 10 B. 13 C. 38 D. 12