Suppose that elementary education creates a positive externality. If the government does not subsidize education, then
a. the equilibrium quantity of education will be equal to the socially optimal quantity of education.
b. the equilibrium quantity of education will be greater than the socially optimal quantity of education.
c. the equilibrium quantity of education will be less than the socially optimal quantity of education.
d. There is not enough information to answer the question.
c
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Everything else held constant, when real estate prices are expected to decrease
A) the demand curve for bonds shifts to the left and the interest rate rises. B) the demand curve for bonds shifts to the left and the interest rate falls. C) the demand curve for bonds shifts to the right and the interest rate falls. D) the supply curve for bonds shifts to the right and the interest rate falls.
An advance in technology results in:
a. suppliers offering a larger quantity than before at each given price. b. suppliers offering the same quantity as before at a lower price. c. a rightward shift of the supply curve. d. an increase in supply. e. all of these.