Which of the following is a possible reason for a comparatively steeper demand curve for health care?
a. A large increase in the price of health care leads to a more than proportionate fall in the quantity demanded for health care.
b. The demand curve for health care is comparatively steeper than other products, because health care is a Giffen good.
c. A change in the price of health care
leads to no change in the profit earned by the suppliers.
d. A large increase in the income of households leads to a less than proportionate increase in the quantity demanded.
e. A large increase in price does not cause a reduction in the purchase of health care by the same proportion.
e
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When an economy is operating on its production possibilities curve, more production of one good means less production of another because:
a. resources are limited. b. resources are not perfectly adaptable to alternative uses. c. wants are limited. d. wants are unlimited. e. some resources are not employed.
Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the quantity supplied of good X per year is Q1, the result is a deadweight loss represented by area:
A. BEG. B. CBEFD. C. EGH. D. BEF.