The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then the private market outcome is inefficient because
A) no students will go to college.
B) society places less value on educating the next student than it will cost society to educate that student.
C) society places greater value on educating the next student than it will cost society to educate that student.
D) the marginal cost will shift upward.
C
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If the market demand curve does not capture all of the benefits to society of buying an additional unit of good, then:
A. the allocation of resources will be socially optimal. B. the market equilibrium will not be efficient. C. the market equilibrium will be socially optimal. D. the market will not be in equilibrium.
A vertical supply curve for fish represents a
a. surplus of fish b. shortage of fish c. market-day supply curve d. short-run supply curve for fish e. long-run supply curve for fish
One way to attain a faster rate of economic growth would be to shift some resources from the production of _________ goods to the production of __________ goods.
Fill in the blank(s) with the appropriate word(s).
If two nominal exchange rates are given as 4 shekel/dollar and 0.711 dinar/dollar, so 1 dollar can buy either 4 shekels or 0.711 dinars, then each Jordanian dinar is worth ________ Israeli shekels, and each shekel is worth ________ dinars.
A. 5.623; 0.178 B. 0.178; 5.623 C. 1.96; 0.51 D. 0.51; 1.96