Health insurance often pays 80 percent of health care cost. This situation will encourage the rational consumer to:
A. Consume less health care because the cost is too expensive
B. Obtain health insurance that pays less than 80 percent of medical care costs
C. Use more medical services than they would if they had to paid the full price
D. Eliminate their health care coverage because it does not cover 100 percent of the cost
C. Use more medical services than they would if they had to paid the full price
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If the share of population employed in two countries is the same, average living standards will be higher in the country with:
A. lower average labor productivity. B. higher average labor productivity. C. the smaller population. D. the larger population.
The Oh So Humble Bakery sells 300 muffins at a price of $1 per muffin. Its explicit costs for producing 300 muffins are $250. If the bakery is earning a normal rate of return, then implicit costs must be
A. $50. B. $100. C. $250. D. $350.