Refer to the below table. With insurance paying two-thirds the cost of health care, there would be a resulting allocative:
Use the table below to answer the question. The table shows the hypothetical demand and supply schedule for health care
A. Efficiency because at 500 units the marginal cost to society of $400 equals the marginal benefit of $400
B. Efficiency because at 700 units the marginal cost to society is $200 and the marginal benefit is $600
C. Inefficiency because at 700 units the marginal cost to society is $600 and the marginal benefit is $200
D. Inefficiency because at 700 units the marginal cost to society is $400 and the marginal benefit is $200
C. Inefficiency because at 700 units the marginal cost to society is $600 and the marginal benefit is $200
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If the economy is producing at point a on its production possibility frontier, then
A) all of the country's workers are employed. B) all of the country's workers are specialized in one product. C) all of the country's capital is used for one product. D) all of its capital is used, but not efficiently. E) all of the country's exports are produced in equal amounts.
Most markets are not monopolies in the real world because
a. firms usually face downward-sloping demand curves. b. supply curves slope upward. c. firms usually equate price with marginal cost. d. there are reasonable substitutes for most goods.