The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the equilibrium number of students at the college if the market is unregulated?
A) 1,000
B) 3,000
C) 4,000
D) 5,000
A
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Matt deposits $150,000 into his bank, which has a required reserve ratio of 15 percent. Matt’s bank must keep ______ of this new deposit in its reserves.
a. $10,000 b. $127,500 c. $150,000 d. $22,500
Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000, with 25 percent of jobs offering $30,000 per year, 50 percent offering $40,000 per year and 25 percent offering $50,000 per year and that in all other respects, the jobs are equally satisfying. Assume that in this market, a job offer remains open for only a short time so that continuing to search requires an applicant to reject any current job offer. If this scenario describes job searches in general, the segment of the population that is most risk-averse will tend to earn:
A. average salaries. B. stable salaries. C. below-average salaries. D. above-average salaries.
We import more goods and services from ___________ than from any other country.
Fill in the blank(s) with the appropriate word(s).
If a firm makes production decisions such that it achieves maximum output from a fixed stock of resources, this means that this firm is
a. achieving allocative efficiency c. earning a normal profit b. earning a positive economic profit d. technically efficient