By subsidizing the provision of public education, the government
A) generates an increase in the quantity of educational services demanded.
B) pushes the per-unit price that consumers pay for educational services below the market clearing price.
C) pushes the per-unit price that producers of educational services receive above the market clearing price.
D) all of the above.
Answer: D
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The labor supply curve is backward bending because
A) as the wage rate rises, the substitution effect becomes larger than the income effect. B) as the wage rate rises, the income effect becomes larger than the substitution effect. C) an increase in the wage rate shifts the supply of labor curve leftward at higher wages. D) an increase in the wage rate shifts the supply of labor curve rightward at higher wages.
The primary purpose of bank regulation is to
A. assure that banks do not get into financial trouble. B. assure that banks lend to needy persons and businesses. C. assure that banks maintain a minimum level of profits. D. guarantee bank profitability and prevent stockholder losses.
The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)
A. decrease in interest rates and an increase in the price of existing bonds. B. increase in output, which induces more investment. C. increase in interest rates and a decrease in the price of existing bonds. D. decrease in interest rates and the price of existing bonds.
Which of the following types of mergers are of greater concern as being anticompetitive among antitrust regulators?
a. Horizontal mergers b. Vertical mergers c. Conglomerate mergers d. Horizontal, vertical and conglomerate mergers are of equal concern as being anticompetitive