Medicare
A. subsidizes the care of middle aged people, which gives them an incentive to consume more medical services.
B. subsidizes the care of older people, which gives them an incentive to consume more medical services.
C. subsidizes the care of older people, which gives them NO incentive to consume more medical services.
D. subsidizes the care of young people, which gives them an incentive to consume less medical services.
Answer: B
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If the horizontal axis measures the quantity of bank reserves and the vertical axis measures the interest rate, the demand curve for bank reserves ________
A) slopes up B) is perfectly elastic C) slopes down D) is perfectly inelastic
The principle of decreasing marginal benefit explains why the marginal benefit curve
A) is upward sloping. B) has an infinite slope. C) is vertical. D) is downward sloping. E) is horizontal.