Using the figure above, suppose a subsidy of $15,000 per student is provided to private colleges. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________
A) exceeds; above the efficient quantity
B) exceeds; below the efficient quantity
C) is below; above the efficient quantity
D) is below; below the efficient quantity
E) equals; efficient
E
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Suppose bad weather in Florida unexpectedly results in a much smaller citrus crop than had been projected. This would cause the ________ labor to pick citrus fruit in Florida to ________
A) supply of; decrease B) demand for; decrease C) supply of; increase D) demand for; increase
Which of the following situations generally exists when deflation occurs?
A) Inflation and unemployment are both increasing. B) Inflation and unemployment are both decreasing. C) The price level is decreasing. D) The rate of inflation is falling from, for example, 10% to 3%. E) The natural rate of unemployment is zero.