Does the existence of the University of Oklahoma affect citizens who do not attend the University?
What will be an ideal response?
Education creates an external benefit. Hence people who do not attend the University of Oklahoma benefit from the education received by its students because this education has external benefits. For instance, the presence of hundreds of thousands of educated graduates from the University of Oklahoma raises public discourse on certain topics and makes the provision of high quality social activities, such as live theater, more common.
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If a firm in the long run produces less than its efficient scale, it
A) should raise its markup to increase its profit. B) should lower its markup to increase its profit. C) cannot be a perfectly competitive firm. D) should not advertise to increase its profit. E) must have its markup equal to zero.
Which of the following will shift a production possibilities curve outward?
a. an increase in the unemployment rate b. a decrease in the unemployment rate from 18% to 15% c. an improvement in technology d. a decrease in available labor and capital
Interest can be defined as
A. the amount of funds loaned to a creditor. B. the return paid to owners of capital. C. the return above opportunity cost paid to owners of a firm. D. the participation of a shareholder in the operations of a firm.
Using the SSNIP test, if two firms merge and the result is that the new, merged firm can raise the price of its product by ________ percent for ________ year(s), then the product the merged firm produces represents a market.
A) one; five B) five; five C) five; one D) one; one