If federal financial aid were severely reduced, what would happen to the equilibrium quantity of education supplied by educational institutions?
A. The quantity supplied would remain unchanged.
B. The quantity supplied would fall.
C. The quantity supplied would increase.
D. It depends on whether the demand effect or supply effect is larger.
Answer: B
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Average variable cost is equal to
A) average total cost minus average fixed cost. B) average total cost multiplied by output. C) total cost divided by output. D) the change in total cost divided by the change in output.
According to the expectations theory, what will be the interest rate on a three-year bond if a one-year bond has an interest rate of 2% and is expected to have an interest rate of 3% next year and 5% in two year?
Report your answer using a percentage with two decimal places.
Which of the following is a good measure of economic prosperity?
a. The level of real GDP b. The growth rate of real GDP c. The level of nominal GDP d. The price level
The "tragedy of the commons" is most likely to occur with which one of the following goods?
a. A national forest b. A mineral ore deposit c. A public highway d. A groundwater aquifer e. A city park