An editorial in the paper argues that students should only be allowed to attend school so long as the marginal cost of educating that student is less than the marginal benefit of that student’s education. The writer’s reasoning is an application of 

Which of the following statements is correct regarding a tax on a good and the resulting deadweight loss?

When the United States imposes a tariff on a good, the amount of the ________ in U.S. producer surplus is ________ the amount of the ________ in U.S. consumer surplus.

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $16 per shirt. The United States imposes a tariff on imported shirts, $4 per shirt. In the figure above, the tariff ________ U.S. imports of shirts by ________ million shirts per year.

When a shortage exists in a market, sellers

In the above figure, if the production of gloves was restricted to 2,000 a day, then the deadweight loss would equal

Price (dollars per bushel) Quantity demanded (bushels) 8 2,000 7 4,000 6 6,000 5 8,000 4 10,000 3 12,000 The table above gives the demand schedule for snow peas. If the price of snow peas rises from $3.00 to $4.00 a bushel, total revenue will

You are in charge of the local city-owned golf course. You need to increase the revenue generated by the golf course in order to meet expenses. The mayor advises you to increase the price of a round of golf. The city manager recommends reducing the price of a round of golf. You realize that

Suppose that you have won a free ticket to see Lady Gaga performing live.  Tickets normally sell for $100, but your free ticket has no resale value.  You are really not a Lady Gaga fan—the most you would have been willing to pay for a ticket is $45!  You really want to see Shania Twain in concert on the same night.  If you choose instead to go to see Shania Twain, which is really more your style, your opportunity cost of missing the Lady Gaga concert is:

Missouri can produce 15,000 tons of pecans per year or 40,000 tons of pears per year. Washington can produce 12,000 tons of pecans per year or 24,000 tons of pears per year. If these two states were to engage in trade, which of the following is true?