What is special about healthcare that makes it a good provided by the government?
What will be an ideal response?
The government provides healthcare services because the marginal social benefit of healthcare exceeds the marginal benefit perceived by its consumers, Consumers underestimate the benefit of healthcare because they underestimate the health risks they face. They also underestimate their future needs for healthcare. And some people cannot afford the healthcare they need. For these reasons the majority of voters want healthcare to be available on need rather than on the ability and willingness to pay
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If S = 300, T = 800, G = 1100, and I = 150, this makes net foreign investment
A) 150. B) -150. C) 450. D) 750. E) -450.
The short-run supply curve for the perfectly competitive firm is the portion of its
A) MC curve above the AVC curve. B) MC curve above the AFC curve. C) MC curve above the ATC curve. D) MC curve above the MR curve.