Medicare subsidies will cause people to
A) perceive the price they pay per unit of medical services to be lower than the price received by the provider.
B) perceive the price they pay per unit of medical services to be higher than the price received by the provider.
C) perceive the price they pay per unit of medical services to be exactly equal to the price received by the provider.
D) demand fewer services.
A
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Keynesians believe that the economy will never will reach a full employment equilibrium.
Answer the following statement true (T) or false (F)
Suppose that a powerplant is given a permit to pollute 10 tons of carbon into the atmosphere. As the powerplant operates, it can generate $200 of profit selling electricity per ton of carbon that it sends into the atmosphere. If the price of the carbon permit is $100 per ton, then:
A. the powerplant is better off shutting down and selling its permit. B. the powerplant is better off buying more permits and selling more electricity. C. the powerplant is better off selling electricity and using the permits to pollute 10 tons of carbon. D. the powerplant is better off shutting down and buying more permits.