1 When does an increase in price produce a substitution effect?only if there is a realincome

Question

1.When does an increase in price produce a substitution effect?

only if there is a real-income

effect

always

only if purchasing power is impacted significantly

only if marginal utility per dollar increases relative to another good

only if marginal utility per dollar decreases relative to another good

2.The ________ line, and the area underneath, contain all of the possible combinations that a consumer can afford.

redaction

optimization

indifference

budget constraint

Maginot

3.On an annual basis, heahcare expenditures in the United States are approximately

$3 trillion.

$1 trillion.

$100 billion.

$500 billion.

$750 billion.

4.What is one cited reason why heahcare expenditures are so high in the United States?

Medicare and Medicaid reduce the supply of medical care.

Insurance companies attempt to control medical care costs by capping expenditures.

Doctors know patients are likely covered by insurance, which reduces the demand for medical care.

Doctors know patients are likely covered by insurance and provide unnecessary services and treatments.

Patients covered by insurance consume too little heah care.

Economics