Use the Figure Below to Answer the Following Questions

question 97

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.

Uncover the rationale and economic impact of licensing in professions with high stakes for consumer welfare.

Recognize the role of public goods and the problem of underproduction in a free-market economy.

Identify the importance of externalities and their impact on market efficiency.

Comprehend the significance of imperfect information in market transactions.

---

Definitions:

Cellular Damage

Harm or injury to cells resulting from exposure to toxic chemicals, lack of nutrients, infection, or physical injury.

Light-Dependent Reactions

First stage of photosynthesis; convert light energy to chemical energy. A noncyclic pathway produces ATP, oxygen, and NADPH; a cyclic pathway produces ATP only.

Cyclic

A term describing structures or processes that occur in or follow a circular or repeating pattern.

Noncyclic

Referring to processes that do not repeat in a cycle but occur in a single, linear sequence or are constant.