Why would the amount of education provided be inefficient if subsidies to education were not provided?
What will be an ideal response?
Private decision makers consider only private benefits and costs when purchasing education. As a result, the value that all of society places on the last unit of education purchased exceeds the cost of that education. This is not efficient because more education would generate social benefits that exceed social costs. Subsidies can overcome this problem by reducing the private cost of education, thereby leading to a greater quantity of education being provided.
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What was the Industrial Revolution? How did it contribute to modern economic growth?
What will be an ideal response?
According to the text, the cost-plus-markup procedure
A) is the only sensible way to set prices. B) is a sure-fire way to ruin a business. C) is a general rule of thumb for price searchers. D) can be practiced only by price takers.
Which of the following is NOT a component of the incomes approach to GDP?
A) net exports B) wages and salaries C) corporate profits D) proprietors' income
In tacit collusion, price visibility ________ the cost of cheating and ________ the temptation to cheat.
A) decreases; increases B) increases; increases C) decreases; decreases D) increases; decreases