The figure above shows the market for college education in the United States
If the government intervenes in the market and provides a subsidy to colleges to enroll the efficient number of students, the amount of the subsidy equals ________ per student. A) $5,000
B) $16,000
C) $13,000
D) $11,000
E) $7,000
A
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The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. If paper production is 4 tons per week, the outcome is ________
A) efficient because marginal benefit equals marginal private cost B) efficient because private and external costs are accounted for C) inefficient because only marginal external benefits are accounted for D) inefficient because marginal social cost exceeds marginal social benefit
If a group of professionals successfully lobby the government to require workers in their profession to have a license, the most likely result will be a(n)
a. reduction in the supply of such professionals and a decrease in their wage rate b. reduction in the demand for such professionals and an increase in their wage rate c. reduction in the supply of such professionals and an increase in their wage rate d. reduction in the demand for such professionals and a decrease in their wage rate e. increase in the demand for such professionals and an increase in their wage rate
Assume that Greece has a comparative advantage in fish and Germany has a comparative advantage in cars. Also assume that Germany has an absolute advantage in both fish and cars. If these two countries specialize and trade so as to maximize the benefits of specialization and trade, then
a. the two countries' combined output of both goods will be higher than it would be in the absence of trade. b. Greece will produce more fish than it would produce in the absence of trade. c. Germany will produce more cars than it would produce in the absence of trade. d. All of the above are correct.
In the short run, monopolistically competitive firms behave like ________, but in the long run, the profit of a firm is similar to that of ________.
A. monopolies; oligopolies B. oligopolies; perfectly competitive firms C. monopolies; perfectly competitive firms D. perfectly competitive firms; monopolies