Because education generates a positive externality, ______
A. everyone who wants a college education should get one
B. graduates' marginal benefit exceeds the society's value of the educa-tion
C. the quantity of education undertaken will achieve the social interest if it is free
D. subsidies to colleges or vouchers to students are means of achieving the efficient number of graduates
D Figures 9.9 and 9.10 show how subsidies and vouchers in-crease the number of students to be equal to the efficient number.
You might also like to view...
If a society is operating on its production possibilities frontier, and then decides to produce less health care,
a. its standard of living will fall b. its standard of living will improve c. some of its resources will become unemployed d. it will be able to produce more of some other good or service e. the opportunity cost of producing health care will rise
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $700; AVC = $500; MC = $600; MR = $600. The firm should
A) increase output. B) decrease output. C) continue to produce its current output. D) shut down.