If both the MU and MC of flower pots is $1.50 and the MU and MC of coffee cups is $2, then economic efficiency would require
A. increased production of flower pots.
B. increased production of coffee cups.
C. the price of coffee cups to exceed the price of flower pots.
D. the price of flower pots to exceed the price of coffee cups.
Answer: C
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The figure above shows the market for college education in the United States. If the government does not intervene in this market, the number of students going to college is ________ and the efficient number of students is ________
A) 13 million students per year; 16 million students per year B) 14 million students per year; 16 million students per year C) 10 million students per year; 14 million students per year D) 10 million students per year; 13 million students per year E) 14 million students per year; 10 million students per year
New growth theory assumes that
A) all inputs experience diminishing returns. B) only random technological advances produce growth. C) knowledge does not experience diminishing returns. D) None of the above answers is correct.
Savings-and-loans are now federally insured through the
A) FDIC. B) FSLIC. C) NCUSIF. D) Comptroller of the Currency.
Carl opens a 5-year CD for $1,000 that pays 3% interest compounded annually. What is the value of the CD at the end of five years?
a. $1,159 b. $1,126 c. $1,300 d. $1,150