Suppose that unemployment increases because the government requires employers to provide more funds for their employees' retirement programs. The increase in unemployment is most likely a result of an increase in

Explain why labor might not always be a variable input

What will be an ideal response?

Which of the following reforms could potentially reduce spending on health care without reducing the effectiveness of health care received?

A) nationalize health care so that all health services are government funded and operated B) give every citizen a fixed amount of money that can only be spent on health care services C) reimburse consumers for preventive health care expenditures so as to avoid costly emergency medical treatments in the future D) standardize the tax treatment of employer-based health insurance benefits and private spending on health care