Suppose a subsidy is offered to consumers of education as a means of internalizing the externalities associated with education. If the subsidy accurately reflects the external benefits of education, then the new demand curve for education coincides with which other curve?
The new demand curve coincides with the social-value curve.
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A "forbearance" policy in dealing with weak banks is opposed by the __________ policy
A) prompt corrective action B) too-big-to-fail C) risk-based capital ratio D) leverage ratio
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Which of the following is most likely a topic of discussion in economics?
a. Families must decide whether to spend their money on a new car or a fancy vacation. b. Nations must choose whether to put more of the budget into police and fire protection or into the school system. c. Towns must choose whether to put more of the budget into police and fire protection or into national defense. d. Nations must decide whether to devote more funds to national defense or to police and fire protection.
In the long run, a monopolist can continue to earn economic profits.
Answer the following statement true (T) or false (F)