Short-run outcomes in the economy can be expressed in terms of output and the price level, or in terms of unemployment and inflation
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose health-care reform Y makes it unlawful for insurance companies to deny insurance to persons with a preexisting disease and sets a fine for those people who do not buy insurance. It follows that if the fine is
A) larger than the benefits derived from not buying insurance right away, then people will not buy the insurance and pay the fine. B) smaller than the benefits derived from not buying the insurance right away, then people will not buy the insurance and pay the fine. C) larger than the benefits derived from not buying insurance right away, then people will buy the insurance right away and not pay the fine. D) b and c E) none of the above
Figure 8.8 shows demand, marginal revenue, and costs of a duopolist. If the two duopolists have the same costs and split the market equally, each profit-maximizing duopolist will earn a profit of ________.
A. $30,000 B. $15,000 C. $10,000 D. $0