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Social Science Clinic => Economics => Topic started by: HCHenry on Apr 19, 2019

Title: Education generates external benefits. When these external benefits are not considered, the market ...
Post by: HCHenry on Apr 19, 2019

Question 1

If a subsidy is granted to perfectly competitive firms that provide external benefits to society, the firm's marginal cost curve will shift ________ and the industry supply curve will shift to the ________.

◦ down; left
◦ down; right
◦ up; right
◦ up; left

Question 2

Education generates external benefits. When these external benefits are not considered, the market will produce

◦ an efficient level of education.
◦ more than the efficient level of education.
◦ less than the efficient level of education.
◦ zero units of education.

Title: Education generates external benefits. When these external benefits are not considered, the market ...
Post by: C.mcnichol98 on Apr 19, 2019

Answer 1

down; right

Answer 2

less than the efficient level of education.

Title: Education generates external benefits. When these external benefits are not considered, the market ...
Post by: HCHenry on Apr 19, 2019

Excellent

Title: Education generates external benefits. When these external benefits are not considered, the market ...
Post by: C.mcnichol98 on Apr 19, 2019

Great! Please up vote :D