The above figure shows the marginal benefits and marginal costs of a college education. If a voucher for $5,000 is given to the students, then colleges charge tuition of
A) $0.
B) $5,000.
C) $10,000.
D) $15,000.
C
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A contestable market is one in which there are
A) one or a few firms, and entry into the market is costly. B) one or a few firms, and entry into the market is not costly. C) many firms, and entry into the market is costly. D) many firms, and entry into the market is not costly.
Invention is the discovery of a new process or idea. Innovation is
A. the continuing search for inventions. B. copying ideas from rival firms. C. putting an invention to work. D. basic research.
Which statement is false?
A. The perfect competitor is a small firm producing an identical product. B. A perfectly competitive industry has great mobility of resources. C. There are many examples of perfectly competitive industries in the United States. D. The perfectly competitive firm makes zero economic profits in the long run.
Will increases in federal spending always increase real GDP and employment in the short run? Are there any circumstances in which the federal government would not want to increase its spending even if it results in higher uotput and lower unemployment in the short
What will be an ideal response?