Which of the following is a question answered with positive economic analysis?
A. Should the college reduce tuition for out-of-state residents?
B. Should the college charge higher tuition for part-time students?
C. If the college increased its eligibility requirements for enrollment, will class sizes decline?
D. Should the college eliminate its athletic program to cut its costs?
Answer: C
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Refer to the above figure. The points between A and B are known as
A) a peak. B) a trough. C) an expansion. D) a contraction.
Price discrimination:
A. can benefit consumers with a lower willingness to pay when compared to other consumers in the market B. can be a successful strategy for any firm in a competitive market C. tends to decrease the profits of the firm. D. is more successful if resale of the product is possible from one consumer to another.
Whenever the price of an asset rises above what appears to be its fundamental value, the market is said to be experiencing a
a. conjectural mistake. b. fundamental mishap. c. speculative bubble. d. temporary inefficiency.
One condition for private bargaining to occur, according to the Coase theorem, is that there must be:
A. government creation of a market for externalities. B. government intervention to establish bargaining. C. many people affected and involved. D. clearly established property rights.