How might governments achieve an efficient provision of education?
What will be an ideal response?
Governments could use public provision, private subsidies, or vouchers to achieve efficiency in the market for education. Public provision: The government could determine the efficient amount of education and create public colleges. This method is the primary method used for K-12 education. Private subsidies: The government could offer subsidies to private colleges. Vouchers: The government would give vouchers to students. Pell grants are an example of vouchers.
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In 2009, the return on American investments abroad was _____ the return earned by foreigners on their investments in the U.S.
A. larger than B. about equal to C. smaller than
If the Fed's policy reaction function equals r = .02 + p, where r is the real interest rate, p is the inflation rate. When the inflation rate is at the current target of 2%, then the real interest rate will be set at:
A. zero. B. 4% C. 2%. D. 6%.