If education has positive externalities, _____
a. the resources will be efficiently allocated in providing education
b. the private costs of production will be lower than the social costs
c. the government can help to bring about a more efficient allocation through subsidies
d. the benefits of consumption accrue only to the consumers
e. the government can help to bring about a more efficient allocation by levying education cess
c
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The labor force is defined as the
A) number of people over 16 years of age. B) number of people who are working. C) sum of employed and unemployed people. D) number of people in blue-collar jobs.
The one uncontroversial statement at the foundation of "supply-side" theory is that
A) cutting income tax rates raises the tax base by enough to increase tax revenues. B) income taxes reduce the after-tax reward to work and saving. C) reducing income taxes would significantly increase work effort. D) reducing income taxes would significantly increase personal saving.
According to the textbook, for most goods and services-foods, beverages, entertainment, etc.-the income elasticity of demand is:
A. larger in the short run than in the long run. B. larger in the long run than in the short run. C. about the same in the short run and in the long run. D. is difficult to differentiate from the short run to the long run.
In the diagram above, at the market equilibrium price, what is the consumer surplus?
a. A b. B c. C d. D e. none of the above