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
D
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Because incentive contracts result in more risk placed on the part of agents
a. the average level of compensation typically falls b. the average level of compensation typically rises c. compensation is unaffected d. employers want employees to insure against wild compensation swings
Expansionary fiscal and monetary policy from 2008 to 2010, took the risk of being inflationary for the sake of avoiding additional unemployment
a. True b. False Indicate whether the statement is true or false
As long as a market is contestable, then even if it has only a few sellers, the
a. threat of new entrants will prevent the prices from rising above the competitive level. b. producers will be able to charge prices that are high enough to produce long-run economic profits. c. producers will not face new competition because the barriers to entry are high. d. market will never be expected to come close to the competitive result.
Which of the following would cause stagflation?
a. rising government expenditures b. rising oil prices c. a falling money supply d. technical progress