Answer the following questions true (T) or false (F)
1. College education tends to result in a positive externality because the recipient receives the full benefit of the education.
2. The rising cost of malpractice insurance is one of the leading causes of the increase in health care spending as a percentage of GDP in the United States.
3. "Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries.
1. FALSE
2. FALSE
3. TRUE
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Maximizing the level of output for a given total cost of production
A) necessitates using only relatively low-priced inputs. B) will maximize total revenue. C) is equivalent to producing the profit maximizing output level. D) is equivalent to minimizing cost for a given level of output.
Fears that the Munn v Illinois (1877) doctrine would result in excessive government control over businesses were not realized, for it actually had the effect of retarding government regulation
Indicate whether the statement is true or false