Suppose that an MBA degree creates no externality because the benefits of an MBA are captured by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?
a. The equilibrium quantity of MBAs will equal the efficient quantity of MBAs.
b. The equilibrium quantity of MBAs will be greater than the efficient quantity of MBAs.
c. The equilibrium quantity of MBAs will be less than the efficient quantity of MBAs.
d. The tuition paid by the student would be exceed the efficient amount.
B
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When regulated using rate of return regulation, who benefits from the practice of some natural monopolies to count sumptuous offices, free baseball tickets, golf excursions, and limousines as costs of production?
A) stockholders B) managers of the monopoly C) customers of the monopoly D) regulators of the industry E) None of the above answers is correct.
In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million and employment of 141.6 million. Based on these numbers the unemployment rate was
a. 93.3/234.9. b. 12.4/234.9. c. 93.3/154. d. 12.4/154.
Recycling in the United States in recent years
A. has decreased in spite of increased rates for common recycling materials. B. has remained unchanged, and increased rates for recycling may help. C. has increased with increased rates for recycling materials. D. has increased with no help from increased fees for recycling materials.
Assume an economy experiences, for a given period, a 4% increase in output and a 4% increase in productivity. Given this information, we know that which of the following occurred for this economy during this period?
A) The unemployment rate increased during this period. B) The unemployment rate decreased during this period. C) The unemployment rate did not change during this period. D) The effects on the unemployment rate are ambiguous. E) none of the above