micro final
A firm produces 400 units of output at a total cost of $1,200. If total variable costs are $1,000, a. average fixed cost is 50 cents. b. average variable cost is $2. c. average total cost is $2.50. d. average total cost is 50 cents.
a
A perfectly price-discriminating monopolist is able to a. maximize profit and produce a socially optimal level of output. b. maximize profit, but not produce a socially optimal level of output. c. produce a socially optimal level of output, but not maximize profit. d. exercise illegal preferences regarding the race and/or gender of its employees.
a
Consider an imaginary country of Glovania with a population of 9,000,000 people. Suppose that a serious disease affects 2% of the population. The treatment costs $7,500. Given that all citizens are risk-averse, what amount is likely to be their insurance payment? a. Any amount between $150 and 7,500. b. Any amount less than $150. c. Any amount above than $150. d. Any amount less than $7,500.
a
Figure 14-6 The following figure depicts average total cost functions for a firm that produces automobiles. Refer to Figure 14-6. Which of the curves is most likely to characterize the short-run average total cost curve of the smallest factory? a.ATCC b.ATCB c.ATCD d.ATCA
a
If a firm uses labor to produce output, the firm's production function depicts the relationship between a. the number of workers and the quantity of output. b. marginal product and marginal cost. c. the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor. d. fixed inputs and variable inputs in the short run.
a
In the United States, people 65 years and older are covered by a. Medicare. b. Medicaid. c. private health insurance. d. the Affordable Care Act.
a
Jane was a partner at a law firm earning $223,000 per year. She left the firm to open her own law practice. In the first year of business she generated revenues of $347,000 and incurred explicit costs of $163,000. Jane's economic profit from her first year in her own practice is a. −$39,000. b. $124,000. c. $163,000. d. $184,000.
a
Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (L = 12, Q = 122) and (L = 13, Q = 130). Then the marginal product of the 13th worker is a. 8 units of output. b. 10 units of output. c. 122 units of output. d. 132 units of output.
a
Noah is offered $9,000 with certainty or to receive $4,500 or $13,500 with a 50-50 probability. If Noah prefers $9,000, Noah is a. a risk-averse person. b. a risk-loving person. c. a risk-neutral person. d. a smart person.
a
On a 200-acre farm, a farmer is able to produce 4,000 bushels of wheat when he hires 2 workers. He is able to produce 5,600 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing marginal product? a. The farmer is able to produce 6,720 bushels of wheat when he hires 4 workers. b. The farmer is able to produce 7,200 bushels of wheat when he hires 4 workers. c. The farmer is able to produce 7,400 bushels of wheat when he hires 4 workers. d. The farmer is able to produce 7,600 bushels of wheat when he hires 4 workers.
a
Refer to Figure 14-2. Which of the curves is most likely to represent marginal cost? a. Curve A b. Curve D c. Curve C d. Curve B
a
Refer to Table 14-2. What is the marginal product of the first worker? a.300 units b.200 units c.100 units d.50 units
a
Scenario 15-2 The information below applies to a competitive firm that sells its output for $40 per unit. • When the firm produces and sells 140 units of output, its average total cost is $24.5. • When the firm produces and sells 141 units of output, its average total cost is $24.60. 11. Refer to Scenario 15-2. Suppose the firm is currently producing and selling 140 units of output. Should the firm increase its output to 141 units? a. Yes, because the marginal revenue exceeds the marginal cost. b. Yes, because the marginal revenue exceeds the average total cost. c. No, because the marginal cost exceeds the marginal revenue. d. No, because the average total cost exceeds the marginal revenue.
a
Since the mid 20th century, healthcare spending as a percentage of GDP in the United States a. shows strong positive growth. b. shows strong negative growth c. remains constant. d. decreased until the early 2000s and then started to increase.
a
Table 14-10Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. Refer to Table 14-10. One month, Teacher's Helper produced 18 instructional modules. What was the average fixed cost for that month? a. $60 b. $108 c. $811 d. It can't be determined from the information given.
a
The average fixed cost curve a. always declines with increased levels of output. b. always rises with increased levels of output. c. declines as long as it is above marginal cost. d. declines as long as it is below marginal cost.
a
Which of the following is a feature of the market for healthcare? a. Sellers are often paid by third parties and not by buyers. b. Sellers are always paid by the government rather than by buyers. c. Sellers always receive payments directly from buyers. d. Prices and allocation of resources are guided only by market demand whereas market supply is irrelevant.
a
A firm produces 100 units of output at a total cost of $1,400. If fixed costs are $100, a. average fixed cost is $14. b. average variable cost is $13. c. average total cost is $15. d. average total cost is $16.
b
A key characteristic of a competitive market is that a. government antitrust laws regulate competition. b. producers sell nearly identical products. c. firms minimize total costs. d. firms have price setting power.
b
A situation in which one party engages in risky behavior because it knows the other party bears the economic consequences of their behavior is called a. risk aversion. b. moral hazard. c. adverse selection. d. negative externality.
b
According to some economists, opening new medical schools is too difficult, which a. is beneficial for society as ultimately it allows to control the cost of healthcare. b. limits the number of doctors. c. increases per capita medical spending. d. increases the number of medical administrators.
b
Antitrust laws have economic benefits that outweigh the costs if they a. prevent mergers that would decrease competition and lower the costs of production. b. prevent mergers that would decrease competition and raise the costs of production. c. allow mergers that would decrease competition and raise the costs of production. d. allow mergers that would decrease competition regardless of what happens to the costs of production.
b
Economies of scale occur when a. long-run average total costs rise as output increases. b. long-run average total costs fall as output increases. c. average fixed costs are falling. d. average fixed costs are constant.
b
Figure 12-2. Health Spending as a Share of GDP: International Comparison, 2019. (Source: The World Bank. Data are for 2019) Refer to Figure 12-2. How much do most developed nations spend on healthcare as percentage of GDP? a. Less than 10 percent b. From 9 to 12 percent c. Approximately 17 percent d. Over 12 percent
b
Figure 15-1 Suppose that a firm in a competitive market has the following cost curves: Refer to Figure 15-1. If the market price is $24, the firm will earn a. positive economic profits in the short run. b. negative economic profits in the short run but remain in business. c. negative economic profits and shut down. d. zero economic profits in the short run.
b
Figure 15-2 Suppose a firm operating in a competitive market has the following cost curves: Refer to Figure 15-2. If the market price is $10, what is the firm's short-run economic profit? a. $9 b. $15 c. $30 d. $50
b
For a large firm that produces and sells automobiles, which of the following costs would be a variable cost? a. The $20 million payment that the firm pays each year for accounting services b. The cost of the steel that is used in producing automobiles c. The rent that the firm pays for office space in a suburb of St. Louis d. The cost of internet advertising incurred each year
b
Health insurance companies charge patients co-payments to a. maximize positive externality. b. reduce moral hazard. c. minimize adverse selection. d. minimize negative externality.
b
If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then a. a one-unit increase in output will increase the firm's profit. b. a one-unit decrease in output will increase the firm's profit. c. total revenue exceeds total cost. d. total cost exceeds total revenue.
b
If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would a. slope downward. b. be horizontal. c. slope upward. d. slope downward for low output levels and upward for high output levels.
b
In a single-payer insurance system the payment for healthcare is a. financed by the premiums people pay for their coverage. b. part of the tax system. c. financed by people's employers. d. paid by the healthiest part of population.
b
In the United States, people with low income are covered by a. Medicare. b. Medicaid. c. private health insurance. d. the Affordable Care Act.
b
In the long run, a. inputs that were fixed in the short run remain fixed. b. inputs that were fixed in the short run become variable. c. inputs that were variable in the short run become fixed. d. variable inputs are rarely used.
b
Inaya, Jai, and Amar carpooling to work is an example of a. a negative externality. b. a positive externality. c. adverse selection. d. risk aversion.
b
Over the past century, life expectancy has a. decreased largely due to COVID-19 pandemic. b. increased largely due to a decline in infant morality. c. increased due to access to Medicare. d. increased largely due to the Affordable Care Act.
b
Refer to Figure 14-1. The graph illustrates a typical ( a. total-cost curve. b. production function. c. production possibilities frontier. d. marginal product of labor curve.
b
Refer to Figure 14-3. Which of the following can be inferred from the figure above? a. Marginal cost is increasing at all levels of output, and marginal product is increasing at low levels of output. b. Marginal product is increasing at low level of output and decreasing at high level of output. c. Marginal cost is increasing at all levels of output, and marginal product is decreasing at high level of output. d. Marginal product is increasing at all levels of output.
b
Refer to Figure 15-6. If the figure in graph (a) reflects the long-run equilibrium of a profit-maximizing firm in a competitive market, the figure in graph (b) most likely reflects a. perfectly inelastic long-run market supply. b. perfectly elastic long-run market supply. c. the entry of firms into the industry when some resources used in production are available only in limited quantities. d. the fact that zero profits cannot be sustained in the long run.
b
Refer to Figure 16-1. The shape of the average total cost curve reveals information about the nature of the barrier to entry that might exist in a monopoly market. Which of the following monopoly types best coincides with the figure? a. Ownership of a key resource by a single firm b. Natural monopoly c. Government-created monopoly d. A patent or copyright monopoly
b
Refer to Figure 16-7. To maximize its profit, a monopolist would choose which of the following outcomes? a. Q = 30 and P = 30 b. Q = 30 and P = 60 c. Q = 45 and P = 45 d. Q = 60 and P = 30
b
Refer to Table 14-3. At which number of workers does diminishing marginal product begin? a.1 b.2 c.3 d.4
b
Refer to Table 14-8. What is the shape of the marginal cost curve for this firm? a. constant b. upward-sloping c. downward-sloping d. U-shaped
b
Risk aversion is defined as a. indifference to risk. b. a dislike of uncertainty. c. a preference to risk. d. an opportunistic behavior.
b
Scenario 14-2 Kachina is a senior majoring in graphic design at Awesome University (AU). While she has been attending college, Kachina started a computer consulting business to help senior citizens learn how to use their iPads. Kachina charges $25 per hour for her consulting services. She also works 5 hours a week for the Economics Department to maintain that department's Web page. The Economics Department pays Kachina $20 per hour. Refer to Scenario 14-2. If Kachina can work additional hours at either job, what is the opportunity cost if she spends one hour reading a novel? a.$20 b.$25 c.$100 d.$125
b
Table 14-6 Consider the following information about baseball production at Bobby's Baseball Factory. Labor Marginal Product (#workers) (Baseballs) 1 3 2 5 3 8 4 10 5 7 6 4 7 2 Refer to Table 14-6. Bobby pays all his workers the same wage, and labor is his only variable cost. From this information we can conclude that Bobby's average variable cost decreases a. as output rises from 0 to 10, but rises after that. b. as output rises from 0 to 26, but rises after that. c. as output rises from 0 to 33, but increases after that. d. continually as output rises.
b
Table 14-7The following table shows the production costs for The Flying Elvis Copter Rides. Refer to Table 14-7. What is the value of D? a. $25 b. $50 c. $100 d. $200
b
Table 14-9 Labor Output FC VC (# workers) (Units) ($) ($) 0 0 30 0 1 100 30 15 2 180 30 30 3 240 30 45 4 280 30 60 5 300 30 75 Refer to Table 14-9. The average variable cost of producing 240 units is... a. $0.13. b. $0.19. c. $0.32. d. $0.80.
b
Table 15-3The table represents a demand curve faced by a firm in a competitive market. Refer to Table 15-3. For this firm, the average revenue when 13 units are produced and sold is a.$1. b.$8. c.$1. d.$0.
b
The government can increase the number of vaccinated people by a. imposing a higher tax rate on unvaccinated people. b. subsidizing production and distribution of vaccines. c. denying healthcare to unvaccinated people. d. publicly shaming unvaccinated people.
b
The government patent for new pharmaceutical drugs may not be an efficient approach to internalize the externality because a. it reduces moral hazard. b. the monopoly price is higher than the marginal cost of production. c. the monopoly price equals the marginal cost of production. d. the monopoly price is lower than the marginal cost of production.
b
To ensure quality of new pharmaceutical drugs, the government requires all drugs to a. be cheaper than $25 per unit. b. obtain FDA approvals. c. be free of side effects. d. be administered at special clinics.
b
When some resources used in production are only available in limited quantities, it is likely that the long-run supply curve in a competitive market is a. downward sloping. b. upward sloping. c. horizontal. d. vertical.
b
Which is a popular argument among critics of the U.S. health system? a. Administrative costs are too high because of the government involvement in healthcare. b. Costs of healthcare could be reduced significantly by shifting to a government-financed single-payer system. c. Private insurance companies should receive tax break in order to reduce their costs and ultimately the premiums they charge. d. The government should incentivize citizens to lead a healthier life style instead of spending on healthcare.
b
An example of negative externality is a. Ishaan house sitting for below the minimum wage. b. Inaya, Jai, and Amar carpooling to work. c. A farmer increasing the use of antibiotics to treat livestock. d. Savitha volunteering in a community garden.
c
Brady Industries has average variable costs of $1 and average total costs of $5 when it produces 100 units of output. The firm's total fixed costs equal a. $4. b. $6. c. $400. d. $1,400.
c
Cold Duck Airlines flies between Tacoma and Portland. The company leases planes on a year-long contract at a cost that averages $600 per flight. Other costs (fuel, flight attendants, etc.) amount to $550 per flight. Currently, Cold Duck's revenues are $1,000 per flight. All prices and costs are expected to continue at their present levels. If it wants to maximize profit, Cold Duck Airlines should a. drop the flight immediately. b. continue the flight. c. continue flying until the lease expires and then drop the run. d. drop the flight now but renew the lease if conditions improve.
c
Figure 15-3 Suppose a firm operating in a competitive market has the following cost curves: Refer to Figure 15-3. When market price is P7, a profit-maximizing firm's short-run profits can be represented by the area a. P7 × Q5. b. P7 × Q3. c. (P7 − P5) × Q3. d. We are unable to determine the firm's profits because the quantity that the firm would produce is not labeled on the graph.
c
If Stella's Fashion Jewelry sells its product in a competitive market, then a. the price of that product depends on the quantity of the product that Stella's Fashion Jewelry produces and sells because the firm's demand curve is downward sloping. b. Stella's Fashion Jewelry total cost must be a constant multiple of its quantity of output. c. Stella's Fashion Jewelry total revenue must be proportional to its quantity of output. d. Stella's Fashion Jewelry total revenue must be equal to its average revenue.
c
If a monopolist is able to perfectly price discriminate, a. consumer surplus is always increased. b. total surplus is alw ays decreased. c. consumer surplus and deadweight losses are transformed into monopoly profits. d. the price effect dominates the output effect on monopoly revenue.
c
In an imaginary country of Costa Luna with a population of 7,000,000 people, 2% of the population are sick with a serious disease. The treatment costs $7,500 per patient. If all citizens agree to an insurance payment of $150, then we can say that the citizens are a. risk neutral people. b. risk loving people. c. risk averse people. d. practically healthy people.
c
Jasmine decides to open her own business and earns $130,000 in accounting profit the first year. When deciding to open her own business, she withdrew $20,000 from her savings, which earned 5 percent interest. She also turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jasmine's economic profit from running her own business? a. $89,000 b. $129,000 c. $84,000 d. $99,000
c
One of the reasons why people refuse vaccination against infectious disease is because a. it results in a positive externality. b. it results in a negative externality. c. vaccination is costly. d. it involves risk aversion.
c
Refer to Figure 14-2. Curve A intersects curve B a. where the firm maximizes production. b. at the minimum of average fixed cost. c. at the efficient scale. d. where fixed costs equal variable costs.
c
Refer to Figure 16-4. How much output will the monopolist produce in order to maximize profit? a.0 b.X c.Y d.Z
c
Scenario 15-1 Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. Refer to Scenario 15-1. To maximize its profit, the firm should a. increase its output. b. continue to produce 1,000 units. c. decrease its output but continue to produce. d. shut down.
c
Since the mid 20th century, healthcare spending as a percentage of GDP in the United States a. remains constant which is explained in part by Baumol's cost disease. b. shows strong negative growth which is explained in part by falling birth rates. c. shows strong positive growth which is explained in part by rising costs of treatment. d. decreased until the early 2000s and then started to increase which is explain in part by Baumol's cost disease.
c
Some economists compare the medical profession to a. a free market. b. a temporary monopoly. c. a monopoly. d. a cartel.
c
Suppose a certain firm is able to produce 155 units of output per day when 18 workers are hired. The firm is able to produce 169 units of output per day when 19 workers are hired, holding other inputs fixed. The marginal product of the 19th worker is a. 8 units of output. b. 9 units of output. c. 14 units of output. d. 169 units of output.
c
Suppose a firm in each of the two markets listed below were to increase its price by 30 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed might not? a. Restaurants and smartphones b. Electricity and natural gas c. Wheat and college textbooks d. Rice and soybeans
c
Table 14-7The following table shows the production costs for The Flying Elvis Copter Rides. Refer to Table 14-7. What is the value of B? a. $25 b. $50 c. $100 d. $200
c
Table 15-2The table represents a demand curve faced by a firm in a competitive market. Refer to Table 15-2. For this firm, the average revenue from selling 2 units is a.$0. b.$1. c.$15. d.$2.
c
Table 15-6Suppose that a firm in a competitive market faces the following revenues and costs: Refer to Table 15-6. The firm will produce a quantity greater than three because at 3 units of output, marginal cost a. is greater than marginal revenue. b. equals marginal revenue. c. is less than marginal revenue. d. is minimized.
c
The competitive firm's long-run supply curve is that portion of the marginal cost curve that lies above average a. fixed cost. b. variable cost. c. total cost. d. revenue.
c
Total cost is the a. amount a firm receives for the sale of its output. b. fixed cost less variable cost. c. market value of the inputs a firm uses in production. d. quantity of output minus the quantity of inputs used to make a good.
c
What is a likely concequence of a phenomenon called the death spiral? a. The cost of a doctor visits declines. b. The pool of healthier-than-average patients increases. c. The insurance market may disappear. d. Competition among insurance companies increases.
c
When marginal cost is less than average total cost, a. marginal cost must be falling. b. average variable cost must be falling. c. average total cost is falling. d. average total cost is rising.
c
Which is a popular argument among critics of the U.S. health system? a. Administrative costs are too high because of the government involvement in healthcare. b. Costs of healthcare will rise significantly by shifting to a government-financed single-payer system. c. The U.S. government should follow undertake more aggressive regulatory policies to reduce drug prices. d. The government should incentivize citizens to lead a healthier life style instead of spending on healthcare.
c
Which of the following can eliminate the inefficiency inherent in monopoly pricing? a. Arbitrage b. Cost-plus pricing c. Price discrimination d. Regulations that force monopolies to reduce their levels of output
c
Which of the following industries is most likely to exhibit the characteristic of free entry? a. Mineral mining b. Electricity c. Fashion jewelry d. Satellite radio
c
Which of the following is an example of an implicit cost? a. Interest paid on the firm's debt b. Rent paid by the firm to lease office space c. The owner of a firm forgoing an opportunity to earn a large salary working for a Wall Street brokerage firm d. Wages paid to workers
c
Which of the following markets is characterized by this feature: "The invisible hand can't work its magic, so the allocation of resources can be highly inefficient"? a. The labor market b. The eCommerce market c. The market for healthcare d. The developing markets
c
Bev is opening her own court-reporting business. She financed the business by withdrawing money from her personal savings account. When she closed the account, the bank representative mentioned that she would have earned $300 in interest next year. If Bev hadn't opened her own business, she would have earned a salary of $25,000. In her first year, Bev's revenues were $30,000, and she spent $1,000 on materials and supplies. Which of the following statements is correct? a. Bev's total explicit costs are $26,300. b. Bev's total implicit costs are $300. c. Bev's accounting profits exceed her economic profits by $300. d. Bev's economic profit is $3,700.
d
Figure 12-2. Health Spending as a Share of GDP: International Comparison, 2019. (Source: The World Bank. Data are for 2019) Refer to Figure 12-2. Which of the following countries spends the most on healthcare as a percentage of GDP? a. Canada b. France c. Japan d. The United States
d
In Canada, the healthcare system is run by a. Medicare. b. Medicaid. c. private health insurance. d. the government.
d
Iyana is a florist. Iyana can arrange 26 bouquets per day. She is considering hiring her husband James to work for her. Together Iyana and James can arrange 39 bouquets per day. What is James's marginal product? a. 65 bouquets b. 39 bouquets c. 28 bouquets d. 13 bouquets
d
Price discrimination a. is illegal in the United States and Europe. b. can occur in both perfectly competitive and monopoly markets. c. is illogical because it does not maximize profits. d. can maximize profits if the seller can prevent the resale of goods between customers.
d
Rapid development of effective COVID-19 vaccines was possible due to a. access to Medicare. b. access to Medicaid. c. the Affordable Care Act. d. advances in medical technology.
d
Scenario 15-2 The information below applies to a competitive firm that sells its output for $40 per unit. • When the firm produces and sells 140 units of output, its average total cost is $24.5. • When the firm produces and sells 141 units of output, its average total cost is $24.60. Refer to Scenario 15-2. When the firm increases its output from 140 units to 141 units, its profit a. decreases by $1.40. b. decreases by $40.00. c. increases by $40.00. d. increases by $1.40.
d
Scenario 16-1 A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $50, its average revenue is $100, and its average total cost is $54. Refer to Scenario 16-1. At Q = 500, the firm's total revenue is a. $2,000. b. $25,000. c. $27,000. d. $50,000.
d
Table 14-10Teacher's Helper is a small company that has a subcontract to produce instructional materials for disabled children in public school districts. The owner rents several small rooms in an office building in the suburbs for $600 a month and has leased computer equipment that costs $480 a month. Refer to Table 14-10. How many instructional modules are produced when marginal cost is $1,300? a.4 b.5 c.7 d.8
d
Table 15-2The table represents a demand curve faced by a firm in a competitive market. Refer to Table 15-2. This firm maximizes total revenue by producing a. 1 unit. b. 3 units. c. 5 units. d. as many units as possible.
d
Table 15-4The following table presents cost and revenue information for a firm operating in a competitive industry. Refer to Table 15-4. What is the total revenue from selling 4 units? a. $120 b. $257 c. $317 d. $480
d
Table 16-3Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination. Refer to Table 16-3. If the monopolist can engage in perfect price discrimination, what is the average revenue when 7 ties are sold? a.$90 b.$100 c.$110 d.$130
d
The Affordable Care Act signed by President Obama in 2010 and often called "Obamacare" a. forced the healthiest patients to drop coverage by increasing insurance premiums to everyone. b. reduced moral hazard by decreasing the insurance premiums to everyone. c. allowed health insurance companies charge more to cover people with pre-existing medical conditions. d. required all Americans to buy health insurance and imposed a financial penalty on those who did not.
d
To ensure quality of medical services, the government requires all physicians, dentists and nurses to a. have perfect health. b. obtain FDA approvals. c. volunteer at free clinics. d. obtain medical licenses.
d
When a factory is operating in the short run, a. it cannot alter variable costs. b. total cost and variable cost are usually the same. c. average fixed cost rises as output increases. d. it cannot adjust the quantity of fixed inputs.
d
When insurance companies raise prices, a. the most unhealthy people tend to drop coverage. b. the most risk averse people tend to buy insurance policies. c. the least risk averse people tend to buy insurance policies. d. the healthiest people tend to drop coverage.
d
Which is a popular argument among the defenders of the U.S. health system? a. Administrative costs are too high because of the government involvement in healthcare. b. Costs of healthcare could be reduced significantly by shifting to a government-financed single-payer system. c. Private insurance companies should receive tax break in order to reduce their costs and ultimately the premiums they charge. d. The international differences observed in health data reflect differing approaches to diet and exercise.
d
Which is a popular argument among the defenders of the U.S. health system? a. The U.S. government should undertake more aggressive regulatory policies to reduce drug prices. b. Costs of healthcare could be reduced significantly by shifting to a government-financed single-payer system. c. Private insurance companies should receive tax break in order to reduce their costs and ultimately the premiums they charge. d. Countries with low drug prices are free-riding on the research that is largely financed by higher prices in the United States.
d
Which of the following markets is characterized by this feature: "The invisible hand on its own leads to an efficient allocation of resources"? a. The market for healthcare b. The market for eCommerce c. The labor market d. The market for goods and services
d
