The Problem with Denying CHIP Benefits to Children Is That

question 5

Multiple Choice

The problem with denying CHIP benefits to children is that it involves

• A) a reduction of federal money to the state.
• B) an increase in taxes for the wealthy.
• C) an increase in the state's debt.
• D) a reduction in hospital taxes for the needy.

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Definitions:

Competitive Industry

An industry characterized by many buyers and sellers, such that no single market participant has significant influence over prices.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms are making neither excess profit nor losses, typically reached over time.

Decreasing-Cost Industry

An industry in which expansion through the entry of firms lowers the prices that firms in the industry must pay for resources and therefore decreases their production costs.

Long-Run Supply Curve

A graphical representation showing the relationship between market prices and the amount of output that firms are willing to supply in the long run.