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In a recession, consumers have less income to spend. As a result, if dining out is a normal good, then which of the following would happen to the demand curve for dining out?
a. The demand curve would shift leftward.
b. The demand curve would not shift but the price of dining out would rise.
c. The demand curve would shift rightward.
d. The demand curve would not shift but the price of dining out would fall.
Moving beyond this particular episode, briefly discuss how do asymmetric information, adverse selection, and moral hazard affect the future of health care policy in the United States.
Since no one party owns a not-for-profit hospital, physicians really own the hospital’s business. Consumer cooperatives have a long and successful history in development of the HMO. For-profit firms make up the bulk of hospital organizations.
Why do most modern societies try to reduce poverty? Why don’t they do so by simply passing a law requiring everybody to have the same income? Explain
Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor force..
Indicate whether there will be economies of scale, diseconomies of scale, or constant returns to scale if the facilities are built optimally.
The classical principle of monetary neutrality states that changes in the money supply do not influence ________ variables and is thought most applicable in the ________ run. According to the quantity theory of money, which variable in the quantity e..
Calculate nominal GDP in 2006 and in 2007 and the percentage increase in nominal GDP between 2006 and 2007.
Suppose that Ellen has $I to spend on goods x and y: The price of good x is px and the price of good y is p y: Write down Ellen's budget line and draw it. Indicate the slope, as well as the vertical and the horizontal intercept.
Suppose Humphrey starts out with four pounds of food and seven gallons of water, while Lauren starts out with eight pounds of food and five gallons of water. Draw an Edgeworth box that shows all possible allocations of these goods, and plot the endow..
q.a brewery is considering two potential production investmentsoption a costs an initial 2 million as well as will
In 1980, Stewie bought a Walkman for $29. If the price index was 25 in 1980 and the price index today is 129, then what is the price of the Walkman in today's dollars?
What is the average time period for the introduction of a new drug into market? One act passed by the federal government aimed at reducing the monopoly power of patented drugs was. Which drug is likely to be the most profitable for its producer (in t..
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