A
Like a pure monopoly, an oligopoly is characterized by
significant barriers to entry.
Two-thirds of the total income made in the U.S. economy is paid as
wages and salaries to workers.
Firms are concerned with productivity, which is measured as
the rate of output per unit of input.
A(n) __________ is a quantification of relative satisfaction.
util
The cost of providing health care is due to the __________ between consumers, producers, and intermediaries.
conflict of incentives
The __________ is often the intermediary between consumers and producers in the health care market.
insurance company
If you take more risks when you are protected from possible negative effects of the behavior, then this is a __________ problem.
moral hazard
__________ occurs when workers with the same ability as others are not paid the same because of a certain group characteristic such as race or age.
Wage discrimination
A __________ constraint imposes a limitation to the bundle of goods selected by the consumer that maximizes his total utility.
budget
The field of economics that draws on insights from psychology to expand models of individual decision-making is __________ economics.
behavioral
When two or more firms set prices or quantities in unison, economists refer to them as a
cartel.
What are the three factors of production?
land, labor, capital
As the price of medical care rises, the
quantity demanded decreases.
The two biggest consumers of medical care are patients and
the federal government.
__________ decision-making is planning to do something over a period of time, which requires valuing the present and future consistently.
Intertemporal
An agreement among rival firms that specifies the price each firm charges and the quantity it produces is referred to as
collusion.
Because a product’s demand for an input for its production depends on the decision to produce this product, it is called a(n) __________ demand.
derived
The __________ is a comparison of the wealth in the top and bottom quintiles of an economy.
Gini index
All combinations of two goods that lie on the __________ or inside it are affordable for the consumer.
budget constraint line
If someone wears his or her favorite clothes first, then he or she is most likely to have a __________ time preference.
positive
The __________ effect occurs when a change in price affects the number of customers in a market.
output
Suppose the government raises the retirement age to 75. We would expect to see the labor supply curve
shift right.
__________ are transfers (mostly to the poor) in the form of goods and services instead of cash.
In-kind transfers
__________ occurs when a consumer buys more of a good as a result of a relative price change.
The substitution effect
__________ explains why some investors try to make up for losses by taking more chances.
Prospect theory