1. Which of the following statements is not true about an excise tax?
A- A unit tax is an excise tax.
B- An excise tax is levied on the purchases of particular good or service.
C-An excise tax is based on an individual's income.
D-An excise tax shifts the market demand curve.
2. The likely effect of a cap on payments received by hospitals and doctors for Medicare services is that
A- the elderly would receive prompt medical attention.
B-recipients would be discharged from hospitals earlier than the medically required period.
C-costs would be significantly reduced.
D- doctors' profits would be equal to an average return on investment.
3. Part of the reason the Medicare system costs so much is
A- the amount of medical services is determined by the equilibrium of supply and demand.
B- the supply of medical services does not respond to price changes.
C- supply and demand analysis does not apply.
D-the amount of services that people are consuming is greater than they value the services at.