If you lived in Jamaica, you would know that Jamaican GDP less capital depreciation in Jamaica equals

Suppose that an MBA degree creates no externality because the benefits of an MBA are captured by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?

a. The equilibrium quantity of MBAs will equal the efficient quantity of MBAs. b. The equilibrium quantity of MBAs will be greater than the efficient quantity of MBAs. c. The equilibrium quantity of MBAs will be less than the efficient quantity of MBAs. d. The tuition paid by the student would be exceed the efficient amount.

Neoclassical economics does not hold which of the following assumptions?

A. People are fundamentally rational B. People can make errors initially, but they learn quickly C. People's errors are random and rare D. People make regularly-repeated mistakes