In the figure above, suppose the government provides vouchers worth $15,000 per student per year. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________

A) exceeds; above the efficient quantity
B) exceeds; below the efficient quantity
C) is below; above the efficient quantity
D) is below; below the efficient quantity
E) equals; efficient

E

Economics

You might also like to view...

In the Solow model, if k = 8, y = 20, and s = 0.2, what is c?

A) 24 B) 20 C) 16 D) 12

Economics

Which of the following is a way to finance a budget deficit?

A) increased private saving B) decreased domestic investment C) decreased foreign investment D) all of the above

Economics