Since most colleges and universities charge the same tuition to every student regardless of what time students choose to take their classes,
A) the schools must develop some type of non-price rationing device.
B) it follows that all classes will have a shortage of seats.
C) it follows that all classes will have a surplus of seats.
D) it follows that some classes will likely have a shortage of seats while other classes may have a surplus of seats.
E) a and d
E
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Marissa owns a small cottage by the lake. Big Boy’s Sawmill is next door, and it dumps sawdust into a sinkhole it owns. Unfortunately for Marissa, the sinkhole opens into a brook on her land, which gets clogged by the sawdust. It costs Marissa $3,000 per year to clean up the sawdust. Big Boy’s can dispose of the sawdust by having it hauled away for $2,000 per year. Marissa offers to pay Big Boy’s $2,500 per year to have the sawdust hauled away. In this example of the Coase theorem, what is the result if Big Boy’s accepts Marissa’s offer?
a. Both parties benefit. b. Big Boy’s suffers while Marissa benefits. c. Both parties suffer. d. Marissa suffers while Big Boy’s benefits.
Price reductions are often used as an effective way to increase sales in monopolistic competition.
Answer the following statement true (T) or false (F)
Deflating refers to
a. discounting a future value into its present value by accounting for the opportunity cost of money b. converting a real value into its associated nominal value c. using the discount rate to correct for environmental benefits or costs accruing in some future time period d. none of the above
To close a recessionary gap, the Fed ________ interest rates which ________ aggregate spending and ________ short-run equilibrium output.
A. reduces; increases; decreases B. raises; decreases; increases C. raises; decreases; decreases D. reduces; increases; increases