The table above shows the marginal costs and marginal benefits of college education. If 20 million students are enrolled, the marginal external benefit is
A) zero.
B) $4,000.
C) $5,000.
D) $7,000.
B
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For a given pair of production outputs, the degree of economies of scope:
A) is constant across different output levels. B) only increases as the level of output increases. C) may increase or decrease with output. D) will always tend to zero as output becomes very large.
The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $30 million. In response, consumption falls by $8 million. If GDP and government spending remains the same and Alpetra is a closed economy, what is the change in investment?
a. Investment increases by $8 million. b. Investment decreases by $8 million. c. Investment increases by $38 million. d. Investment decreases by $22 million.
This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
The socially optimal number of bags of litter removed from the roadside each day is:
A. 15. B. 10. C. 20. D. 30.
______ is the expenditure needed to construct a building of equal utility to the existing building.
Fill in the blank(s) with the appropriate word(s).