Lucinda is deciding whether to enroll in an art school or a culinary school. The art school will cost $38,000 and the culinary school will cost $52,000
Lucinda estimates that the benefits from attending the art school will be $75,000 and the benefits from attending the culinary school will be $88,000. Based on these numbers, in which school should Lucinda enroll?
The net benefit from attending the art school is $75,000 - $38,000 = $37,000. The net benefit from attending the culinary school is $88,000 - $52,000 = $36,000. So, even though the total benefit is greater from attending the culinary school, the net benefit is greater from attending the art school, so she should attend the art school.
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Governments impose excise taxes on goods that have inelastic demand, such as cigarettes, more often than in other cases. Why?
What will be an ideal response?
Suppose an increase in the demand for labor results in an increase of $4 per hour in the equilibrium wage. How does the increase in the demand for labor affect the value of the marginal product of labor (VMPL)?
a. The VMPL increases by less than $4. b. The VMPL increases by $4. c. The VMPL increases by more than $4. d. The VMPL decreases by $4.