Apples Are a Normal Good, So If the Price of an Apple

question 4

Multiple Choice

Apples are a normal good, so if the price of an apple increases from 50 ¢ to 60¢, the quantity of apples demanded decrease because of

• A) a change in income.
• B) the substitution effect only.
• C) the income effect only.
• D) the substitution and income effects.

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Definitions:

Patient Protection And Affordable Care Act

United States federal statute enacted in 2010 aimed at expanding health insurance coverage, lowering healthcare costs, and improving healthcare system efficiency and patient care.

National Health Insurance

A program in which a nation’s government provides a basic package of health care to all citizens at no direct charge or at a low cost-sharing level. Financing is out of general tax revenues.

Nonprice Rationing

Refers to the distribution of goods and services based on criteria other than price, such as waiting times or ration coupons.

New Taxes

New Taxes refer to newly implemented fiscal charges by a government on individuals or corporations aimed at generating revenue for public expenditures or influencing economic behavior.