Which of the following is least likely to be the case?
A. Medicare changes the mix of output away from medical services.
B. Housing subsidies encourage the production of additional housing.
C. Food stamps encourage the production of more food.
D. Student loans change the mix of output in favor of educational services.
Answer: A
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A country exports a good if
A) it has a high opportunity cost of production. B) the world price of the good is above the country's no-trade equilibrium price. C) the quantity demanded of the good in the country is greater than the quantity supplied at the world price. D) it cannot import the good. E) the world price of the good is below the country's no-trade equilibrium price.
U.S. antitrust laws are designed to prohibit monopolization and encourage competition. Why, then, does the government erect barriers to entry and create monopoly power by granting firms patents?
What will be an ideal response?