Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. What is Larry's economic surplus from attending State College instead of his next best alternative?
A. $5,000
B. $40,000
C. $20,000
D. $10,000
Answer: A
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Figure 15-1
Figure 15-1 describes conditions in the monopolized weezil industry. In the absence of government intervention, the monopolist will produce an output equal to
A. W. B. X. C. Y. D. Z.
The study of health care provision in Delhi, India by Hammer and Das found:
A. doctors often worked at or beyond their knowledge frontier. B. doctors in public clinics were often more creative in diagnoses and care than doctors in private facilities. C. unless doctors were intrinsically motivated, no incentive exists for them to provide high quality care. D. the implementation of national healthcare provisions had strong associations with quality of care.
If price is above the break-even point, in the short run the firm will _____ and in the long run the firm will _____.
A. shut down; stay in business B. shut down; go out of business C. operate; go out of business D. operate; stay in business
Imposing a unit excise tax on the final sale of a good or service can be displayed graphically as
A) a vertical shift upward of the demand curve. B) a vertical shift upward of the supply curve. C) a vertical shift downward of the demand curve. D) a vertical shift downward of the supply curve.