Education Is Heavily Subsidized Through Public Schools and Government Scholarships

Multiple Choice

Education is heavily subsidized through public schools and government scholarships. This subsidization of education reflects the fact that

A) a negative externality requires a subsidy to move the market equilibrium closer to the social optimum.
B) the social cost of education exceeds the private cost of education.
C) the social value of education exceeds the private value of education.
D) the market-equilibrium quantity of education exceeds the optimal quantity of education.