Recipients of Medicare tend to demand a greater quantity of low-value, high-cost services because
A) the services are readily available.
B) recipients are coerced into demanding such services.
C) the government mandates that they demand such services.
D) the services are heavily subsidized.
Answer: D
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Suppose the Fed increases the money supply. As a result of this, people deposit excess funds into their bank accounts, causing banks to have excess reserves
As a result, the banks lower the interest rates that they charge on loans, and investment rises, causing an increase in aggregate spending. This is known as a(n) A) direct effect of monetary policy. B) indirect effect of monetary policy. C) direct effect of fiscal policy. D) indirect effect of fiscal policy.
Diseconomies of scale tend to occur in large firms because
a. the many layers of management are cumbersome and because it is difficult to monitor employees b. such firms are operating at inappropriate plant sizes for their output levels c. such firms are operating at a point above their long-run average total cost curves d. their ability to adjust their plant sizes is constrained by the existence of fixed inputs e. they fail to garner all the possible gains from specialization