Which is the most likely reason why more students continue on to graduate school when the economy is in bad shape and job prospects are poor?
A) They finally see the value of continuing their education.
B) They are pressured by parents to stay in school a few more years.
C) Their opportunity cost of attending college has fallen.
D) They are irrational in this case, as they will have to take on more debt to finance the graduate degree.
C
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Refer to Figure 13-1. Ceteris paribus, a decrease in personal income taxes would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
In a market with positive externalities, the market equilibrium quantity will be less than the efficient equilibrium quantity
Indicate whether the statement is true or false
In setting an obligatory control on a polluting industry, the government
a. places a tax on the pollution b. creates pollution permits which could be sold on the open market c. creates private property rights for air d. establishes a limit on the amount of pollution a producer is permitted to emit e. offers a subsidy to the polluting firm
Refer to the tables. Suppose that Duckistan and Herbania are each producing 14 units of civilian goods and 2 units of military goods. Then:
A. Duckistan is fully employing its resources, but Herbania is not.
B. both Duckistan and Herbania are fully employing their resources.
C. Herbania is fully employing its resources, but Duckistan is not.
D. neither Duckistan nor Herbania is fully employing its resources.