Author Question: Using the figure above, suppose a subsidy of 15,000 per student is provided to private colleges. ... (Read 32 times)

jrubin · **on:** Jun 29, 2018

Using the figure above, suppose a subsidy of 15,000 per student is provided to private colleges. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________.

A) exceeds; above the efficient quantity
B) exceeds; below the efficient quantity
C) is below; above the efficient quantity
D) is below; below the efficient quantity
E) equals; efficient

Question 2

A south sea island produces only coconuts. In 2012, the price of a coconut is 1 and the quantity produced is 200. In 2013, the price of a coconut is 1.50 and the quantity produced is 250. 2012 is the base year. Real GDP in 2013 is ________.

A) 375
B) 350
C) 200
D) 250
E) 1.50