The state of Georgia offers free college tuition to high school students with a "B" average. In 2007, the state raised the requirement so that fewer students qualified for the scholarship
At the same time, Georgia increased state spending on health care. Suppose that college education is on the vertical axis and health care is on the horizontal axis of a PPF. These changes A) are example of a tradeoff.
B) are an example of incentives.
C) will cause a shift out of the PPF.
D) will cause a shift in the of the PPF.
A
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If the budget deficit was eliminated, the federal government would have more money than it could spend.
Answer the following statement true (T) or false (F)
Suppose a monopoly firm has an annual demand function of Qd = 20,000 - 250P, annual variable costs of VC = 16Q + 0.002Q2 and marginal cost of MC = 16 + 0.004Q, where Q is the annual quantity of output. In addition, the firm has an avoidable fixed cost of $25,000 per year. If this firm maximizes its profit, what is the value of its producer surplus?
A. $156,500 B. $181,500 C. $242,000 D. $217,000
The main policy-making body of the Federal Reserve System is the Federal Open Market committee
Indicate whether the statement is true or false
If a firm expects that the price of its product will be lower in the future than it is today
A) the firm has an incentive to decrease supply now and increase supply in the future. B) the firm will not change supply until it knows for certain what will happen to its price. C) the firm has an incentive to increase quantity supplied now and decrease quantity supplied in the future. D) the firm has an incentive to increase supply now and decrease supply in the future.