Because there are positive externalities from higher education,
a. the private market would provide too little of it
b. the private market would provide too much of it
c. the government should impose a tax on college students
d. the government should impose a tax on students' families
e. higher education should not be produced
A
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Cyclical unemployment occurs because
A. structural barriers such as unions and minimum wage laws keep wages too high to clear the labor market. B. there are long-term mismatches between workers skills and jobs available. C. labor markets are heterogeneous and dynamic. D. the economy is experiencing a period of unusually low production.
Stability implies a steady rate of economic growth with full employment of resources.
Answer the following statement true (T) or false (F)
Demand-pull inflation can develop when
A. Inventories shrink and consumers bid up prices. B. Undesired investment occurs. C. There is a surplus of resources and so wages are bid up by employers. D. There is a shortage of investment and investors bid up interest rates.
Suppose the market demand curve for pizza can be expressed as QD = 100 - 2P + 3Pb, where QD is the quantity of pizza demanded, P is the price of pizza, and Pb is the price of a burrito. What is the relationship between burritos and pizza, from the point of view of consumers?
A) They are independent. B) They are complements. C) They are substitutes. D) Not enough information to answer the question.