The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education
If the government does not intervene in this market, the equilibrium number of students being privately educated is ________ and the efficient quantity is ________. A) 0 students; 400 students
B) 400 students; 400 students
C) 400 students; 600 students
D) 600 students; 400 students
E) 600 students; 600 students
C
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Which of the following statements about venture capital firms is FALSE?
A. Most start-up companies that acquire venture capital eventually turn out to be successes. B. Venture capital firms invest in high-risk, high-potential firms. C. Venture capital firms get most of their capital from pension funds, large university endowments, and other institutions that can take substantial risks with a small portion of their funds. D. Companies that acquire their funds from venture capital firms may initially have trouble acquiring capital from other channels.
(Advanced analysis) Assume that the MPS is .33 in an economy that has an aggregate supply curve with a slope of 1. An increase in investment spending of $10 billion will shift the aggregate demand curve rightward by:
A. $30 billion and increase real GDP by $15 billion. B. $30 billion and increase real GDP by $30 billion. C. $10 billion and increase real GDP by $30 billion. D. $10 billion and increase real GDP by $10 billion.
The graph below represents the market for a product where D1 and S1 show the initial supply and demand curves, and supply shifts to S2 due to a sales tax. The deadweight loss due to the tax is represented by area:
A. EIG
B. EFI
C. BCEF
D. ABFG
Refer to the information provided in Table 14.5 below to answer the question that follows. Table 14.5B's Strategy ?AdvertiseDon't Advertise??A's profit $200 millionA's profit $400 million?AdvertiseB's profit $200 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $150 million?AdvertiseB's profit $400 millionB's profit $150 millionRefer to Table 14.5. What is the Nash equilibrium in the game?
A. (Advertise, Don't Advertise) B. (Advertise, Advertise) C. (Don't Advertise, Don't Advertise) D. (Don't Advertise, Advertise)