The above figure shows the marginal benefits and marginal costs of a college education. If colleges receive a $5,000 subsidy, then enrollment equals
A) 0.
B) 10 million.
C) 15 million.
D) 25 million.
C
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In the event of a recession, which of the following is the most likely policy stance of those who advocate a passive approach to economic policy?
a. Cutting taxes b. Increasing government spending c. Reducing interest rates d. Increasing the money supply e. Doing nothing
At relatively low wage rates the ____________ outweighs the ____________.
A. income effect; substitution effect B. substitution effect; income effect C. marginal revenue product; resource demand D. None of these choices are correct.
A knitting factory worker who loses her job because the company has relocated the plant to another country is an example of _____.
(A) Cyclical unemployment (B) Frictional unemployment (C) Seasonal unemployment (D) Structural unemployment
Recall the Application about the break-even price for growing switchgrass, a perennial grass that is native to the U.S. plains states and is used to create biofuel, to answer the following question(s).Recall the Application. If the minimum average total cost for switchgrass farmers is $55 per ton and the minimum average variable cost is $40 per ton, then at a price of $35 per ton in the short run the switchgrass farmer will:
A. shut down, that is, bring no switchgrass to market. B. operate and lose money. C. make a zero economic profit. D. make a positive economic profit.