Question 1

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

Accepted Answer

A) increased to 41% from 29%. 
B) increased to 5% from 26%. 
C) remained constant. 
D) decreased to 29% from 41%. 
A) increased to 41% from 29%. 
B) increased to 5% from 26%. 
C) remained constant. 
D) decreased to 29% from 41%.

Question 2

A physical book that sells new for $100 will typically sell as an e-book for around

Accepted Answer

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

Question 3

Suppose a college education is choosing between a modestly expensive school ($100,000 over 4 years)and a less expensive school ($40,000 over 4 years)the student should

Accepted Answer

A) Choose the more expensive school only if the present value of the difference in salary is $60,000 or more. 
B) Choose the more expensive school only if the present value of the difference in salary is $60,000 or less. 
C) Choose the more expensive school only if the difference in salary will total $60,000 or more. 
D) Choose the more expensive school only if the difference in salary will total $60,000 or less. 
A) Choose the more expensive school only if the present value of the difference in salary is $60,000 or more. 
B) Choose the more expensive school only if the present value of the difference in salary is $60,000 or less. 
C) Choose the more expensive school only if the difference in salary will total $60,000 or more. 
D) Choose the more expensive school only if the difference in salary will total $60,000 or less.

Question 4

In the United States, the average government subsidy for a college education at a flagship, state institution is approximately __ for every $1 spent by the student.

Accepted Answer

A) $0.65 
B) $2 
C) $5 
D) $10 
A) $0.65 
B) $2 
C) $5 
D) $10

Question 5

A book that sells new for $200 will typically be sold back to the bookstore "used" for

Accepted Answer

A) $26.50. 
B) $50. 
C) $100. 
D) $150. 
A) $26.50. 
B) $50. 
C) $100. 
D) $150.

Question 6

A book that sells new for $200 will typically sell used for around

Accepted Answer

A) $25. 
B) $50. 
C) $100. 
D) $160. 
A) $25. 
B) $50. 
C) $100. 
D) $160.

Question 7

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

Accepted Answer

A) $26.50. 
B) $50. 
C) $75. 
D) $100. 
A) $26.50. 
B) $50. 
C) $75. 
D) $100.

Question 8

Payment of a share of prospective royalties to the author before publication is called the

Accepted Answer

A) advance. 
B) bonus. 
C) stipend. 
D) allowance. 
A) advance. 
B) bonus. 
C) stipend. 
D) allowance.

Question 9

Figure 37.1
-Examine Figure 37.1. What is the number of students educated in a market that has a subsidy equal to the external benefit?

Accepted Answer

A) S' 
B) S* 
C) All who have any desire for it 
D) The answer is unknown from this diagram. 
A) S' 
B) S* 
C) All who have any desire for it 
D) The answer is unknown from this diagram.

Question 10

In the United States, the average government subsidy for a college education at a regional, bachelors-only public institution is approximately __ for every $1 spent by the student.

Accepted Answer

A) $0.85 
B) $2 
C) $5 
D) $10 
A) $0.85 
B) $2 
C) $5 
D) $10

Question 11

Figure 37.1
-Examine Figure 37.1. What is the tuition charged the 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 12

Figure 37.1
-Examine Figure 37.1. What is the number of students educated in a market that has no subsidy?

Accepted Answer

A) S' 
B) S* 
C) All who have any desire for it 
D) The answer is unknown from this diagram. 
A) S' 
B) S* 
C) All who have any desire for it 
D) The answer is unknown from this diagram.

Question 13

Suppose a college education is choosing between an expensive school ($200,000 over 4 years)and a less expensive school ($40,000 over 4 years)the student should

Accepted Answer

A) Choose the more expensive school only if the present value of the difference in salary is $160,000 or more. 
B) Choose the more expensive school only if the present value of the difference in salary is $160,000 or less. 
C) Choose the more expensive school only if the difference in salary will total $160,000 or more. 
D) Choose the more expensive school only if the difference in salary will total $160,000 or less. 
A) Choose the more expensive school only if the present value of the difference in salary is $160,000 or more. 
B) Choose the more expensive school only if the present value of the difference in salary is $160,000 or less. 
C) Choose the more expensive school only if the difference in salary will total $160,000 or more. 
D) Choose the more expensive school only if the difference in salary will total $160,000 or less.

Question 14

In 2014, more than ________ was spent to educate _________ college students.

Accepted Answer

A) $223 million; 152 million 
B) $315 billion; 52 million 
C) $517 billion; 20 million 
D) $661 billion; 8 million 
A) $223 million; 152 million 
B) $315 billion; 52 million 
C) $517 billion; 20 million 
D) $661 billion; 8 million

Question 15

If faculty choose to stay with an old edition of a book this 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 16

Without a copyright, the high fixed costs of textbook creation

Accepted Answer

A) would be more easily recoverable. 
B) would be nearly impossible to recover. 
C) would be lower. 
D) would be higher. 
A) would be more easily recoverable. 
B) would be nearly impossible to recover. 
C) would be lower. 
D) would be higher.

Question 17

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 traditional book stores. 
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 traditional book stores. 
C) likely to increase costs to students. 
D) likely to be self-defeating for publishers.

Question 18

In the United States, the average government subsidy for a college education at a private institution is approximately __ for every $1 spent by the student.

Accepted Answer

A) Less than $0.65 
B) $2 
C) $5 
D) $10 
A) Less than $0.65 
B) $2 
C) $5 
D) $10

Question 19

College textbooks royalties are typically expressed as a

Accepted Answer

A) percentage of net sales. 
B) percentage of gross sales. 
C) fixed dollar amount per edition. 
D) fixed dollar amount for all editions. 
A) percentage of net sales. 
B) percentage of gross sales. 
C) fixed dollar amount per edition. 
D) fixed dollar amount for all editions.

Question 20

If a book has a royalty rate of 15% and 12,000 copies are sold to bookstores at $50 each the bookstore returns 2000 unsold books to publishers, and the bookstore sells the books to students for $62.50 the author will be paid

Accepted Answer

A) $90,000 (.15*50*12,000). 
B) $75,000 (.15*50*10,000). 
C) $93,750 (.15*62.50*10,000). 
D) $112,500 (.15*62.50*12,000). 
A) $90,000 (.15*50*12,000). 
B) $75,000 (.15*50*10,000). 
C) $93,750 (.15*62.50*10,000). 
D) $112,500 (.15*62.50*12,000).

Exam 37: Economics of College and University Education

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

A physical book that sells new for $100 will typically sell as an e-book for around

Suppose a college education is choosing between a modestly expensive school ($100,000 over 4 years)and a less expensive school ($40,000 over 4 years)the student should

In the United States, the average government subsidy for a college education at a flagship, state institution is approximately __ for every $1 spent by the student.

A book that sells new for $200 will typically be sold back to the bookstore "used" for

A book that sells new for $200 will typically sell used for around

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

Payment of a share of prospective royalties to the author before publication is called the

Figure 37.1 -Examine Figure 37.1. What is the number of students educated in a market that has a subsidy equal to the external benefit?

In the United States, the average government subsidy for a college education at a regional, bachelors-only public institution is approximately __ for every $1 spent by the student.

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

Figure 37.1 -Examine Figure 37.1. What is the number of students educated in a market that has no subsidy?

Suppose a college education is choosing between an expensive school ($200,000 over 4 years)and a less expensive school ($40,000 over 4 years)the student should

In 2014, more than ________ was spent to educate _________ college students.

If faculty choose to stay with an old edition of a book this is predicted to

Without a copyright, the high fixed costs of textbook creation

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

In the United States, the average government subsidy for a college education at a private institution is approximately __ for every $1 spent by the student.

College textbooks royalties are typically expressed as a

If a book has a royalty rate of 15% and 12,000 copies are sold to bookstores at $50 each the bookstore returns 2000 unsold books to publishers, and the bookstore sells the books to students for $62.50 the author will be paid

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Natural Resources, the Environment, and Climate Change

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

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In 2014, more than was spent to educate _ college students.