The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then
A) a subsidy of $10,000 per student paid to colleges will achieve efficiency.
B) a tax of $10,000 per student imposed on the colleges will achieve efficiency.
C) 10 million students per year is the efficient number students.
D) None of the above answers are correct.
A
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As a measure of competition in an industry, concentration ratios have several flaws. One of these flaws is that concentration ratios
A) are calculated for the national market, even though competition in some industries is mainly local. B) assume that all industries have low barriers to entry. C) assume that a ratio less than 40 percent means an industry is perfectly competitive. D) assume there are only four firms in an industry.
If a good is Giffen and its price increases,
a. the income effect will be positive and the substitution effect will be positive. b. the income effect will be negative and the substitution effect will be negative. c. the income effect will be positive and the substitution effect will be negative. d. the income effect will be negative and the substitution effect will be positive.
According to business activity charts for the last 100 years, the point of the highest business activity in the United States occurred
A. during the Trump administration. B. during the 1920s bull market boom. C. during World War II. D. during the Vietnam War.
Scarcity can be eliminated through
A) the use of market mechanisms. B) exploration that helps us find new resources. C) wise use of our resources. D) None of the above because scarcity cannot be eliminated.