The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient level of college education, tuition is

A) $10,000 per year.
B) $12,000 per year.
C) $14,000 per year.
D) $16,000 per year.

B

Economics

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In the above figure, if the economy is in equilibrium at E1, then

A) the economy is producing below its potential long-run equilibrium at full employment. B) the economy is producing above its potential long-run equilibrium at full employment. C) there is an inflationary gap in the economy. D) the economy is in a period of high inflation.

Economics

Economists recognize that because people have limited resources:

A. they will never be happy. B. our future is bleak. C. they have to make trade-offs. D. government intervention is necessary.

Economics