Multiple Choice
Use the figure below to answer the following questions. Figure 15.3.3
-Refer to Figure 15.3.3.The figure shows the marginal private benefit and marginal social cost of a university education.If society's external benefit from university graduates is $10,000 each,then
A) a subsidy of $10,000 per student paid to the universities achieves efficiency.
B) a tax of $10,000 per student imposed on the universities achieves efficiency.
C) 10 million students per year is the efficient number students.
D) a subsidy of $20,000 per student paid to the universities achieves efficiency.
E) a tax of $5,000 per student paid by taxpayers achieves efficiency.
Correct Answer:

Verified
Correct Answer:
Verified
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