Using the figure above, suppose education is provided by public colleges, where tuition is set at $10,000 a year
When the market is in equilibrium, the marginal social benefit is ________, the marginal cost is ________, and the number of students enrolled is ________. A) $25,000; $25,000; efficient
B) $25,000; $10,000; inefficient
C) $15,000; $25,000; inefficient
D) $15,000; $15,000; efficient
E) $25,000; $15,000; inefficient
A
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The break-even point on the consumption function represents the point where
A) consumption is zero. B) income equals consumption plus spending. C) consumption equals spending. D) consumption equals income.
Income redistribution ________
A) creates an income distribution that is less equal than the market distribution B) is efficient because it makes the distribution of income more equal. C) eliminates the big tradeoff between rich and poor D) creates a deadweight loss
The world's largest exporter and importer is
a. the United States b. Japan c. Germany d. Canada e. Hong Kong
Consider Figure 8.9. If the players choose independently, what will be the outcome?
A. Becky chooses a low price and David chooses a low price. B. Becky chooses a high price and David chooses a low price. C. Becky chooses a low price and David chooses a high price. D. Becky chooses a high price and David chooses a high price.