Tuition and fees for four year colleges in the United States have risen over five percent per year recently. One cause for the increase in price has been an increase in demand for college education. In the standard model, what could be a possible explanation for the increase in the demand for college education?
A. Income in the United States has risen
B. The cost of two-year colleges has declined over the same period
C. More colleges have been established
D. The price of all other goods in the economy has risen 3 percent over the same period
Answer: A
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Suppose the price of a can was $5.10. In this case, to maximize its profit, the firm illustrated in the figure above would
A) decrease its production and would make an economic profit. B) not change its production and would make zero economic profit. C) not change its production and would make an economic profit. D) decrease its production and would incur an economic loss. E) not change its production and would incur an economic loss.
Capital accumulation definitely
A) has no impact on the production possibilities frontier. B) shifts the production possibilities frontier inward. C) makes the production possibilities frontier steeper. D) shifts the production possibilities frontier outward.
An example of a capability considered in the capabilities approach would be:
A. to have the ability to purchase a luxury item you really want. B. being able to afford appropriate healthcare required for a healthy life. C. to be able to afford to travel freely. D. to have adequate food and shelter.
How can governments intervene in trade?
A. by producing cheaper products B. by helping reduce economic uncertainty C. by not buying products from competing countries D. All of these