The figure above shows the market for college education. Left to itself without any government intervention, a competitive market would create a deadweight loss equal to
A) zero.
B) the area d.
C) the area a + c.
D) the area b + c.
E) the area b + d.
C
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Fiscal policy refers to changes in
A) the money supply and interest rates that are intended to achieve macroeconomic policy objectives. B) federal taxes and purchases that are intended to fund the war on terrorism. C) state and local taxes and purchases that are intended to achieve macroeconomic policy objectives. D) federal taxes and purchases that are intended to achieve macroeconomic policy objectives.
Assuming the inverse demand function for good Z can be written as P = 90 - 3Q, when P = 20, the point price elasticity of demand is equal to (approximately):
A) -0.22. B) -0.29. C) -0.67. D) -4.5.
Efficient markets theory suggests that purchasing the published reports of financial analysts
A. is not likely to increase financial returns. B. is likely to increase one's returns by an average of 5 percent. C. will increase financial returns in the first year but not in following years. D. is likely to increase one's returns by an average of about 3 to 5 percent.
With microfinance, the mechanism of peer lending is a way to avoid the problem of
A. a double coincidence of wants. B. the tragedy of the commons. C. imperfect information. D. capital flight.