Question 1

New editions of college textbooks come out

Accepted Answer

A) every year regardless of the degree to which new material warrants it. 
B) when the publisher gets the urge. 
C) when the author gets the urge. 
D) in part, because authors and publishers only profit on new sales. 
A) every year regardless of the degree to which new material warrants it. 
B) when the publisher gets the urge. 
C) when the author gets the urge. 
D) in part, because authors and publishers only profit on new sales.

Question 2

The rental market for textbooks is predicted to

Accepted Answer

A) increase royalty payments to authors. 
B) decrease royalty payments to authors. 
C) have no impact on royalty payments to authors. 
D) increase costs to students 
A) increase royalty payments to authors. 
B) decrease royalty payments to authors. 
C) have no impact on royalty payments to authors. 
D) increase costs to students

Question 3

If e-books begin to be the most popular form of textbooks, it is

Accepted Answer

A) in the best interests of publishers and authors. 
B) in the best interests of internet book sellers. 
C) likely to increase costs to students. 
D) likely to be self-defeating for publishers. 
A) in the best interests of publishers and authors. 
B) in the best interests of internet book sellers. 
C) likely to increase costs to students. 
D) likely to be self-defeating for publishers.

Question 4

The copyright gives its owner

Accepted Answer

A) the exclusive right to sell a work of intellectual property. 
B) the ability to protect its "brand" like Coca-Cola. 
C) the exclusive right to sell an invention. 
D) (usually students)the right to make photocopies for friends. 
A) the exclusive right to sell a work of intellectual property. 
B) the ability to protect its "brand" like Coca-Cola. 
C) the exclusive right to sell an invention. 
D) (usually students)the right to make photocopies for friends.

Question 5

The profit a publisher makes on the sale of a used college textbook is

Accepted Answer

A) the same as when they sell it new. 
B) half of the amount they made when it sold for the first time. 
C) $2 per book. 
D) zero. 
A) the same as when they sell it new. 
B) half of the amount they made when it sold for the first time. 
C) $2 per book. 
D) zero.

Question 6

Since the 1980s federal spending on higher education has taken the form of

Accepted Answer

A) direct payments to faculty. 
B) a substantial shift toward grants rather than loans. 
C) a substantial shift toward subsidized loans rather than grants. 
D) direct payments to universities. 
A) direct payments to faculty. 
B) a substantial shift toward grants rather than loans. 
C) a substantial shift toward subsidized loans rather than grants. 
D) direct payments to universities.

Question 7

The variable cost of producing a college textbook is usually around _____ of its price.

Accepted Answer

A) 80% 
B) 50% 
C) 40% 
D) 20% 
A) 80% 
B) 50% 
C) 40% 
D) 20%

Question 8

A book that sells new for $100 will typically sell used for around

Accepted Answer

A) $25. 
B) $50. 
C) $75. 
D) $100. 
A) $25. 
B) $50. 
C) $75. 
D) $100.

Question 9

Once faculty receive textbooks and choose not to use them they are

Accepted Answer

A) required to mail them back to the publisher. 
B) free to do what they wish with the book, including selling it. 
C) required to destroy the book. 
D) required to give the book to a student or library. 
A) required to mail them back to the publisher. 
B) free to do what they wish with the book, including selling it. 
C) required to destroy the book. 
D) required to give the book to a student or library.

Question 10

An "advance" is called that because

Accepted Answer

A) it is paid before there are royalties but any royalties will be reduced by the amount of the advance. 
B) it is paid after there are royalties. 
C) it is paid instead of royalties. 
D) it is paid before there are royalties though actual royalties are not reduced by the amount of the advance. 
A) it is paid before there are royalties but any royalties will be reduced by the amount of the advance. 
B) it is paid after there are royalties. 
C) it is paid instead of royalties. 
D) it is paid before there are royalties though actual royalties are not reduced by the amount of the advance.

Question 11

The royalty that an author receives on the resale of a used college textbook is

Accepted Answer

A) typically 15%. 
B) half the typical new sale rate, or 7.5%. 
C) set at 2%. 
D) zero. 
A) typically 15%. 
B) half the typical new sale rate, or 7.5%. 
C) set at 2%. 
D) zero.

Question 12

An e-book that sells new for $100 will typically be sold back to the bookstore "used" for

Accepted Answer

A) nothing (it can't be re-sold). 
B) $50. 
C) $75. 
D) $100. 
A) nothing (it can't be re-sold). 
B) $50. 
C) $75. 
D) $100.

Question 13

When textbooks are produced, the idea for a new book typically comes from

Accepted Answer

A) the publisher. 
B) faculty needing a book for their class. 
C) faculty thinking they have a better idea. 
D) department chairs. 
A) the publisher. 
B) faculty needing a book for their class. 
C) faculty thinking they have a better idea. 
D) department chairs.

Question 14

From 1995 to 2013 the share of revenue to public institutions of higher education attributable to appropriations

Accepted Answer

A) increased to 57% from 44%. 
B) increased to 44% from 26%. 
C) remained constant. 
D) decreased to 44% from 57%. 
A) increased to 57% from 44%. 
B) increased to 44% from 26%. 
C) remained constant. 
D) decreased to 44% from 57%.

Question 15

In 2014, expenditure per student in higher education was approximately

Accepted Answer

A) $4,289. 
B) $9,053. 
C) $14,846. 
D) $25,850. 
A) $4,289. 
B) $9,053. 
C) $14,846. 
D) $25,850.

Question 16

A physical book that sells new for $100 will rent for around

Accepted Answer

A) $25. 
B) $50. 
C) $75. 
D) $100. 
A) $25. 
B) $50. 
C) $75. 
D) $100.

Question 17

One side effect of the increased speed with which used books circulate is

Accepted Answer

A) used books are cheaper. 
B) used books are more expensive. 
C) new editions come out more frequently. 
D) new editions come out less frequently. 
A) used books are cheaper. 
B) used books are more expensive. 
C) new editions come out more frequently. 
D) new editions come out less frequently.

Question 18

Figure 37.1
-Examine Figure 37.1. What is the tuition and subsidy revenue per student in a market that has a subsidy equal to the external benefit?

Accepted Answer

A) T1 
B) T2 
C) T* 
D) The answer is unknown from this diagram. 
A) T1 
B) T2 
C) T* 
D) The answer is unknown from this diagram.

Question 19

A university education costs more per student than a high school education because

Accepted Answer

A) college professors teach less than high school teachers. 
B) college professors earn more than high school teachers. 
C) colleges are typically in a monopoly position. 
D) A and B. 
A) college professors teach less than high school teachers. 
B) college professors earn more than high school teachers. 
C) colleges are typically in a monopoly position. 
D) A and B.

Question 20

Over the last 34 years, costs of college tuition, room and board have increased by

Accepted Answer

A) 32%. 
B) 87%. 
C) 138%. 
D) 702%. 
A) 32%. 
B) 87%. 
C) 138%. 
D) 702%.

Exam 37: Economics of College and University Education

New editions of college textbooks come out

The rental market for textbooks is predicted to

If e-books begin to be the most popular form of textbooks, it is

The copyright gives its owner

The profit a publisher makes on the sale of a used college textbook is

Since the 1980s federal spending on higher education has taken the form of

The variable cost of producing a college textbook is usually around _____ of its price.

A book that sells new for $100 will typically sell used for around

Once faculty receive textbooks and choose not to use them they are

An "advance" is called that because

The royalty that an author receives on the resale of a used college textbook is

An e-book that sells new for $100 will typically be sold back to the bookstore "used" for

When textbooks are produced, the idea for a new book typically comes from

From 1995 to 2013 the share of revenue to public institutions of higher education attributable to appropriations

In 2014, expenditure per student in higher education was approximately

A physical book that sells new for $100 will rent for around

One side effect of the increased speed with which used books circulate is

Figure 37.1 -Examine Figure 37.1. What is the tuition and subsidy revenue per student in a market that has a subsidy equal to the external benefit?

A university education costs more per student than a high school education because

Over the last 34 years, costs of college tuition, room and board have increased by

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