The maximum price a buyer is willing to pay for a good is called:
a. cost

The above figure shows the marginal benefits and marginal costs of a college education. What is the amount of the external benefit in the figure?

A) $0 B) $5,000 C) $10,000 D) $15,000

If firms pay what are called "efficiency wages," they pay wages that

A) are lower than average to ensure maximum profit. B) are mandated by the government. C) will eventually lower the unemployment rate. D) motivate workers to increase their productivity.