The gap between the higher equilibrium tuition and lower student tuition is $4,000 at university A and $10,000 at university B. It follows that
A) if the supply of openings at each university is the same, then the demand to attend university B must be higher than the demand to attend university A.
B) the supply of openings is necessarily larger at university A than B.
C) instructors at university B are likely to be more punctual for their office hours than instructors at university A.
D) instructors at university A are more likely to be punctual for their office hours than instructors at university B.
E) none of the above
D
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Firms free ride on the research and development of other firms when they
A) buy a firm's newly developed product, and then give it away to consumers. B) choose a level of research and development that is inefficiently high. C) license a new technology from a firm that developed the new technology. D) use knowledge other firms have developed without paying for that knowledge.
From 1970 to 1998 the U.S. dollar
a. gained value compared to the Italian lira because inflation was higher in the U.S. b. gained value compared to the Italian lira because inflation was lower in the U.S. c. lost value compared to the Italian lira because inflation was higher in the U.S. d. lost value compared to the Italian lira because inflation was lower in the U.S.
The quantity of money demanded is the
A) average daily volume of bank account withdrawals. B) amount that people and businesses choose to hold. C) fraction of cash holdings in an average investment portfolio. D) income and volume of profits that people and businesses would like to receive. E) sum of checkable and savings deposits at banks.
Under a fixed exchange rate system, if the inflation rate in the United States is 5 percent a year and the inflation rate in Australia is 0 percent a year, then the U.S. real exchange rate will:
A. remain constant. B. increase 5 percent a year. C. decrease 5 percent a year. D. possibly increase or decrease.