Tuition and fees for four year colleges in the United States have risen over five percent per year in the recent past. One cause for the increase in price has been an increase in demand for college education. In the standard model, what could be a possible explanation for the increase in the demand for college education?
A. More colleges have been established
B. The cost of two-year colleges has declined over the same period
C. Income in the United States has risen
D. The price of all other goods in the economy has risen 3 percent over the same period
Answer: C. Income in the United States has risen
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Suppose the national government increased taxes by $20 billion. The net effect on the banking system would be to:
a. Reduce bank reserves by $20 billion and reduce bank deposits by $20 billion. b. Increase bank reserves by $20 billion and increase bank deposits by $20 billion. c. Increase government checking accounts in the banking system by $20 billion and reduce the public's checking accounts there by $20 billion. d. Decrease government checking accounts in the banking system by $20 billion and increase the public's checking accounts there by $20 billion. e. Increase government checking accounts in the banking system by $20 billion and increase the public's checking accounts there by $20 billion.
A tariff on a product
a. enhances the economic well-being of the domestic economy. b. increases the domestic quantity supplied. c. increases the domestic quantity demanded. d. results in an increase in producer surplus that is greater than the resulting decrease in consumer surplus.
Between 2000 and 2020, the U.S. government budget deficit
A. as a percentage of U.S. GDP has increased steadily each year. B. has been more than 100% of U.S. GDP. C. as a percentage of U.S. GDP has decreased steadily each year. D. none of these.
Evidence generally suggests that oligopolies inhibit technological advances.
Answer the following statement true (T) or false (F)