When economists describe "a market," they mean:
a. A hypothetical place where the production of goods and services takes place
b. Information networks that allow individuals to keep in touch with each other
c. A mechanism which coordinates actions of consumers and producers to establish equilibrium prices and quantities
d. A place where stocks and bonds are traded
c. A mechanism which coordinates actions of consumers and producers to establish equilibrium prices and quantities
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If a government policy change harms a monopolist, the government could
A) tax those who get additional gains and compensate the monopolist, thereby making the change a Pareto improvement. B) increase the general tax rate and compensate the monopolist, thereby making the change a Pareto improvement. C) do nothing, because the change is a Pareto improvement. D) It is not possible to mitigate the harm to a monopolist.
Since the 1930s, out-of-pocket payments for health care have
A) declined from about 50 to 30 percent of total payments. B) declined from about 95 to 20 percent of total payments. C) declined from about 70 to 30 percent of total payments. D) not changed and remain at 70 percent of total payments.