Does increasing reliance on student loans distort students' career choices?
What will be an ideal response?
Some argue that students who acquire large amounts of debt in college will seek employment options that allow them to pay back loans. If students fail to enter college because the costs are prohibitively high, the problem is solved but society is not welfare enhanced.
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It costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it can produce both the five radios and the five batteries for $1000 . The firm has experienced
a. Economies of Scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
PriceQuantity SuppliedQuantity Demanded$00300$110250$250180$390150$4120120$515090$618050 Refer to Table 6.1, which gives the daily supply and demand schedules for cups of coffee at a kiosk in a shopping mall. If the government places a $2 per cup tax on coffee, how many cups of coffee will be bought and sold after the tax is imposed?
A. 150 B. 50 C. 90 D. 120
Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. Using the concepts of advantage and trade, we can say that the opportunity cost of one pair of gloves is:
A. lower for the United States than Bangladesh, therefore the United States has a comparative advantage in glove production. B. the same for both the United States and Bangladesh, therefore they both have the comparative advantage in glove production. C. the same for both the United States and Bangladesh, therefore no comparative advantage exists. D. higher for the United States than Bangladesh, therefore the United States has a comparative advantage in radish production.
Cassie's Quilts alters, reconstructs, and restores heirloom quilts. Cassie has just spent $800 purchasing, cleaning, and reconstructing an antique quilt which she expects to sell for $1,500 once she is finished. After having spent $800, Cassie discovers
that she would need some special period fabric that would cost her $200 in material and time in order to complete the task. Alternatively, she can sell the quilt "as is" now for $900. What is her marginal benefit if she sells the quilt "as is" now? A) $100 B) $900 C) She makes a marginal loss of $600, not a marginal benefit. D) The marginal benefit cannot be determined.