Because education generates a positive externality, ______
A. everyone who wants a college education should get one
B. graduates' marginal benefit exceeds the society's value of the educa-tion
C. the quantity of education undertaken will achieve the social interest if it is free
D. subsidies to colleges or vouchers to students are means of achieving the efficient number of graduates
D Figures 9.9 and 9.10 show how subsidies and vouchers in-crease the number of students to be equal to the efficient number.
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What will be an ideal response?
Suppose a country repealed its investment tax credit. The effects of this are represented by shifting the
a. demand for and the supply of loanable funds to the right. b. demand for and the supply of loanable funds to the left. c. supply of loanable funds to the right and the demand for loanable funds to the left. d. None of the above is correct.
The time between when a policy is enacted and when it affects the economy is the ________ lag.
A. multiplier B. recognition C. legislative D. effectiveness
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.