Typically, the lower the level of income per person in a country, the lower the level of spending per person on health care. This relationship between income and spending indicates that health care is a

Decreasing returns to scale may occur as increasing the amount of inputs used

A) increases specialization. B) always increases the amount of output produced. C) may cause coordination difficulties. D) increases efficiency.

If the price elasticity of demand for a good is 0.2, then a 3 percent decrease in price results in a

a. 0.6 percent increase in the quantity demanded. b. 1.5 percent increase in the quantity demanded. c. 2 percent increase in the quantity demanded. d. 6 percent increase in the quantity demanded.