The Following Questions Refer to the Graph Below

question 26

Multiple Choice

The Following Questions Refer to the graph below.
-The slope of the supply curve indicates that the

• A)Marginal cost of a year of education is constant
• B)Marginal benefit of an additional year of education increases.
• C)Marginal benefit of an additional year of education is constant
• D)Marginal benefit of an additional year of education increases
• E)Cost of education is subsidized by the public

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Definitions:

Freely Floating Exchange Rate

A currency system where the value of a country's currency is allowed to fluctuate according to the foreign exchange market.

Current Account Deficit

A situation where a country's total imports of goods, services, and transfers are greater than its total exports, indicating that it is spending more foreign currency than it is earning.

Merchandise Trade Deficit

A situation where a country's imports of goods exceed its exports of goods over a given period, leading to a negative balance of trade.

Service Trade Deficit

The situation where the value of a country's imports of services exceeds the value of its exports of services.