The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the tuition that will make the number of students equal to the efficient number?
A) $400
B) $800
C) $2,800
D) $3,200
A
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In the short run, a competitive firm will
a. Will produce a quantity where AC = MR. b. Will produce a quantity where AVC = MR. c. Will produce a quantity where MC = MR. d. Will shut down if price falls below the minimum of average costs.
The opportunity cost of doing something can be defined as the value of the next-best alternative
Indicate whether the statement is true or false
If a bank has $1 million in assets and $50,000 in net worth, its liabilities must equal: a. $50,000
b. $1,050,000. c. $50 million. d. $1,000,000. e. $950,000.
Expansionary fiscal policy increases the level of aggregate demand by
a. increasing consumption by raising disposable income through increased government purchases through increased spending by the federal government. b. increasing consumption by raising disposable income through raising after-tax profits through cuts in business taxes. c. increasing consumption by raising disposable income through increased federal grants to state and local governments. d. increasing consumption by raising disposable income through cuts in personal income taxes or payroll taxes.