The figure above shows the market for college education in the United States. If the government does not intervene in this market, the number of students going to college is ________ and the efficient number of students is ________
A) 13 million students per year; 16 million students per year
B) 14 million students per year; 16 million students per year
C) 10 million students per year; 14 million students per year
D) 10 million students per year; 13 million students per year
E) 14 million students per year; 10 million students per year
C
You might also like to view...
The excess burden of a tax refers to the fact that
A) the benefits from a tax exceed the tax revenue. B) the deadweight loss from a tax exceeds the remaining consumer surplus. C) marginal cost is greater than marginal benefit after the tax. D) a tax creates a deadweight loss. E) taxes are split between buyers and sellers.
The natural unemployment rate is
A) equal to the sum of frictional, cyclical, and seasonal unemployment. B) not known with certainty. C) equal to zero. D) the same for all industrialized countries. E) equal to the sum of frictional, structural, and cyclical unemployment.
If the economy produces its potential output level, then unemployment is at the natural rate and the actual price level is equal to what producers and others expected. Consequently there is no tendency for price or output to change
Indicate whether the statement is true or false
An increase in the demand for workers producing computers for export versus producing agricultural products that can be imported more cheaply from abroad is an example of how increasing wage inequality can result from:
A. increasing reservation prices. B. the diminishing marginal product of labor. C. globalization. D. the diminishing marginal product of capital.