Means-tested college aid, base college aid primarily on
a. a student's abilities, and create an incentive to save.
b. a student's abilities but create a disincentive to save.
c. the current interest rate and are an incentive to save.
d. the current interest rate and are a disincentive to save.
b
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Refer to Scenario 14.1. Lisette's dominant strategy will give her a net benefit of
A) $45. B) $75. C) $120. D) $150.
A monopolist's demand curve is given by:
p = 100 + A1/2 – Q where Q is the quantity of output and A is the quantity of advertising. Suppose the cost of advertising and output is given by: C(Q,A) = 10Q + A Determine the profit maximizing quantity of output and advertising.
If we are on the upper portion of the market demand curve (above the midpoint) and the price increases by 10%, the quantity demanded will decrease by more than 10%.
Answer the following statement true (T) or false (F)
Workers expect inflation to rise from 3% to 5% next year. As a result, this should
A) shift the short-run aggregate supply curve to the left. B) move the economy down along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the right. D) move the economy up along a stationary short-run aggregate supply curve.