Which of the following is the best example of a health-care service with a large public good component?
a. a hair-growing treatment provided to a twenty-five year-old single man
b. heart bypass surgery provided to an employee and paid for by employer-funded insurance
c. a vaccine that reduces the incidence of a communicable disease
d. a hip replacement provided to a senior citizen
C
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A decrease in demand will cause a(n)
a. increase in supply b. decrease in supply c. increase in quantity supplied d. increase in equilibrium price e. decrease in equilibrium price
According to Coase, the optimal allocation of resources is guided by
a. the decisions of a firm's managers b. market prices when market transaction costs are greater than the firm's internal organization costs c. the decisions of a firm's managers when market transaction costs are greater than the firm's internal organization costs d. the decisions of a firm's managers when market transaction costs are less than the firm's internal organization costs e. entrepreneurs