How is a production indifference map helpful?
A production indifference map is a graph whose axes show the quantities of two inputs that are used to produce some output. A curve in the graph corresponds to some given quantity of that output, and the different points on that curve show the different quantities of the two inputs that are enough to produce the given output.
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Refer to Figure 5-12. One way to obtain the economically efficient amount of college education is for governments to subsidize college education
What is the size of the per-student Pigovian subsidy that the government must provide to internalize the external benefits? (Note that the subsidy can be granted to the education institutions or to the students directly or indirectly; for example, through low-interest student loans.) A) P2-P1 B) P1 C) P2-P0 D) P0-P1
Corrective taxes enhance efficiency, but the cost to administer them exceeds the revenue they raise for the government
a. True b. False Indicate whether the statement is true or false