The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, the amount of enrollment is
A) efficient.
B) inefficient because marginal social cost exceeds marginal social benefit.
C) inefficient because marginal social benefit exceeds marginal social cost.
D) inefficient because the quantity of education demanded exceeds the quantity of education supplied.
C
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The effect of _____ is to produce an unemployment rate that understates actual unemployment
a. the underground economy b. discouraged workers and underemployment c. the growth in real GDP d. institutionalized and retired labor force e. seasonally unemployed workers
Which of the following statements describes a surplus?
a. A surplus is the same as an excess demand. b. A surplus occurs when the price is above equilibrium price. c. A surplus occurs when the price is below equilibrium price. d. A surplus occurs when the quantity demanded exceeds the quantity supplied.