If the opportunity cost of producing a good domestically exceeds the opportunity cost of purchasing it on the world market, a country can gain by
A. decreasing production and increasing exports.
B. increasing production and decreasing exports.
C. increasing production and decreasing imports.
D. decreasing production and increasing imports.
Answer: D
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If both the demand for a product and the supply of it decrease, then the equilibrium quantity will ________ and the equilibrium price will ________.
A) increase; either increase, decrease, or remain constant B) decrease; either increase, decrease, or remain constant C) increase; increase D) increase; decrease
During the last three decades, the real (adjusted for inflation) expenditures
a. on Medicare have grown rapidly, but the real expenditures on Medicaid have been virtually constant. b. on the Medicare program have been virtually constant but the real expenditures on Medicaid have increased substantially. c. on both Medicare and Medicaid have increased substantially. d. on both Medicare and Medicaid have been virtually constant.