Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

The figure above shows depicts the marginal revenue and costs of a perfectly competitive firm. The price the firm charges is

A) $4 per unit. B) $8 per unit. C) $16 per unit. D) None of the above answers is correct.

Which of the following statements does not explain why US health care expenditures are higher than in other countries?

A) Government policies have shifted the health care production function downward over time. B) Consumer incomes have increased, which allows consumers to purchase more health care. C) The US health care system is relatively inefficient compared to other countries. D) Demand for health care in the US has increased, so health care production occurs at a higher point on the total product curve than in other countries.