The figure above shows the marginal social costs (MSC), marginal private benefits (MB), and marginal social benefits (MSB) of college education in Inland
If Inland's government does not intervene, and the colleges are competitive, the deadweight loss is A) zero.
B) $100 million per year.
C) $200 million per year.
D) $300 million per year.
D
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When an economy is above full employment and the government has a budget deficit, that deficit
A) is less than the structural deficit. B) exceeds the structural deficit. C) is equal to the cyclical deficit minus the structural deficit. D) is equal to the cyclical deficit. E) is equal to the structural deficit minus the cyclical deficit.
According to Scenario 4-1, country C has net exports of:
a. zero. b. $13 million. c. $6 million. d. ?$13 million. e. ?$6 million.
The price elasticity of supply measures how much
a. the quantity supplied responds to changes in input prices. b. the quantity supplied responds to changes in the price of the good. c. the price of the good responds to changes in supply. d. sellers respond to changes in technology.
To internalize the external costs of pollution is to:
A. make the polluter pay all of the costs associated with the polluting activity. B. require that private citizens rather than taxpayers pay for the harmful effects of pollution. C. levy taxes on manufacturing firms located in crowded urban areas. D. auction off pollution rights to those willing to pay the most for them.