Refer to the demand and supply diagram that relates to the health care market. If suppliers provide the quantity of health care demanded and insurance pays one-half of the equilibrium price of the health care good or service depicted, the immediate price to the consumer and the quantity of health care consumed would be:
A. P 1 and Q 1 .
B. P 1 and Q 2 .
C. P 2 and Q 2 .
D. P 2 and Q 1 .
C. P 2 and Q 2 .
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The figure above shows a nation's consumption function. If disposable income is $4 trillion, then the MPC is ________ and saving is ________
A) negative; positive B) positive; positive C) positive; zero D) negative; negative E) positive; negative
The earnings of all employees in a competitive economy would be equal if
a. all individuals were homogeneous. b. all jobs were equally attractive. c. workers were perfectly mobile among jobs. d. all of the above are true.
When supply falls and demand remains the same, equilibrium price _______ and equilibrium quantity __________.
Fill in the blank(s) with the appropriate word(s).
With complete crowding out, an increase in government spending
A) is completely offset by a reduction in private spending. B) is matched by an increase in private spending. C) results in an increase in aggregate supply. D) results in an increase in aggregate demand.