The above figure shows the marginal benefits and marginal costs of a college education. If a subsidy of $5,000 is paid to the colleges, then colleges charge tuition of
A) $0.
B) $5,000.
C) $10,000.
D) $15,000.
B
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Points on the same utility curve are
A. points where the person is indifferent between bundles on the line. B. points where utility is maximized. C. never possible. D. known as "points of light."
An increase in taxes will cause the consumption schedule to
A. shift upward. B. shift downward. C. remain fixed as the economy moves upward along the schedule. D. remain fixed as the economy moves downward along the schedule.
Banks can expand the nation’s money supply by
a) issuing credit cards b) paying interest on deposits c) lending out excess reserves d) cashing checks e) selling life insurance
Which of the following is a characteristic of oligopoly?
A) easy entry and exit B) many firms C) strategic dependence D) horizontal market demand curve