In the figure above, if the government starts to provide university education at no charge, in the long run, the wage rate of high-skilled workers will ________ and the wage rate of low-skilled workers will ________
A) rise; fall
B) fall; rise
C) fall; fall
D) rise; rise
B
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Danny has $12 to spend on two goods: pies and soda. The price of a pie is $4, and the price of a can of soda is $2. To maximize his utility, Danny buys ________
A) the combination that gives him equal total utility from pies and soda B) 2 pies and 2 cans of soda C) only sodas because they are less expensive D) the combination that gives him the same marginal utility per dollar spent on pies as on soda
Public companies ________ and private companies ________
A) sell stock in financial markets; also sell stock in financial markets B) sell stock in financial markets; do not sell stock in financial markets C) do not sell stock in financial markets; sell stock in financial markets D) do not sell stock in financial markets; also do not sell stock in financial markets
Any deviation from the efficient scale of production would result in a(n): a. decreased marginal cost
b. increased marginal cost. c. increased average total cost. d. decreased average total cost.
Inflation:
a) Always reduces the cost of living b) Always reduces the standard of living c) Reduces the price of products d) Reduces the purchasing power of a pound