The table above shows the marginal costs and marginal benefits of college education. The marginal private cost of college education at the efficient quantity of enrollment is
A) 8,000 per year.
B) 12,000 per year.
C) 14,000 per year.
D) 16,000 per year.
Ques. 2S & S Backhoe Service in Ozark, Arkansas rents backhoes and other heavy equipment to local construction companies. What determines the demand for backhoes in Arkansas?
A) The rental rate for backhoes
B) The equilibrium quantity of backhoes
C) The value of marginal product of backhoes
D) The maximum number of backhoes available to rent
Ques. 3When the price of a normal good rises, the income effect results in ________ in the quantity demanded and the substitution effect results in ________ in the quantity demanded.
A) an increase; an increase
B) an increase; a decrease
C) a decrease; an increase
D) a decrease; a decrease
Ques. 4The LRAC curve generally is
A) shaped as an upside-down U.
B) U-shaped.
C) upward sloping.
D) downward sloping.
Ques. 5If the regulator wanted to maximize the total surplus in a natural monopoly market, the regulator has the firm set its price equal to its
A) average fixed cost.
B) average total cost.
C) average variable cost.
D) marginal cost.
Ques. 6The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, the amount of enrollment is
A) efficient.
B) inefficient because marginal social cost exceeds marginal social benefit.
C) inefficient because marginal social benefit exceeds marginal social cost.
D) inefficient because the quantity of education demanded exceeds the quantity of education supplied.
Ques. 7The redistribution of income creates the big tradeoff, which is a tradeoff between ________.
A) income and wealth
B) equity and efficiency
C) rich and poor
D) Supplementary Security Income and the Food Stamp program
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