QUESTION 1 Ifa a positive externality results from the consumption of higher education, then the marginal benefit students receive from education:
a. includes the marginal external benefit b. equals the marginal social benefit c. exceeds the marginal social benefit d. is less than the marginal social benefit. QUESTION 2 Expansionary fiscal policy, other things being equal, will tend to:
a. increase interest rates b. increase investment. c.increase net exports d all of the above QUESTION 3 Which of the following would increase prices for U.S. consumers? a. a tariff on imported automobiles b. an automobile import quota c.a foreign government subsidizing auto production d. (a) and (b) above only QUESTION 4 Which of the following factors that affect our well-being does GDP fail to adequately account for? a. changes in the quality of goods b.externalities c.leisure d.all of the above.
