The unemployment rate generally ________ during recessions and generally ________ during expansions

Refer to Figure 7-5. If consumers paid the full price of medical services, the equilibrium quantity would be

A) 400. B) 800. C) 1,200. D) > 1,200.

Answer the following statement(s) true (T) or false (F)

1. Patents have ambiguous welfare consequences because they both create monopoly power and promote inventive activity. 2. The competition among firms to acquire the rights to legal barriers to entry helps to reduce the welfare costs of monopoly. 3. Social gain is lowered when a monopoly begins to practice price discrimination. 4. When a simple profit-maximizing monopoly begins to practice second-degree price discrimination, both consumers and the monopoly will benefit. 5. Both first-degree price discrimination and the two-part tariff, when perfectly implemented, reduce consumers' surplus to zero.