An efficient clinic
A. will have higher costs than other clinics with similar quality of care.
B. will have lower quality than other clinics with similar costs.
C. will have higher margins than an inefficient competitor.
D. will produce substandard care.
C. will have higher margins than an inefficient competitor.
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The larger is the marginal propensity to consume (MPC)
A) the larger is the multiplier. B) the smaller is the multiplier. C) the smaller is the slope of the consumption function. D) the larger is the slope of the saving function.
When negative externalities exist, a voluntary agreement can be negotiated. Which of the following statements is TRUE?
A) Voluntary agreements usually do not work since the owner has no incentive to negotiate. B) Transactions costs must be low relative to the expected benefits of reaching an agreement. C) Voluntary agreements are difficult to negotiate because they usually involve government intervention. D) Voluntary agreements always leave the owner worse off.