What happens to the budget constraint of the recipient when he receives the $100 cash under Plan A? What is likely to happen to his consumption of both food and "all other goods" if they are both normal goods?
What will be an ideal response?
The budget constraint will shift out and to the right under the cash plan. His consumption of both goods are likely to rise if they are normal goods.
Economics
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The last U.S. president to be in office when the government had a budget surplus was
A) George H. Bush. B) Dwight D. Eisenhower. C) Ronald Reagan. D) George W. Bush. E) Bill Clinton.
Economics
The diagnosis-related-group (DRG) system adopted by Medicare since 1983 has had the following effects, except:
A. Hospitals now receive a fixed payment for treating each patient B. The average length of a hospital stay has increased C. More patients are treated on an outpatient basis D. Hospitals now have an incentive to restrict the amount of resources used for patients
Economics