-The Figure Above Shows the Marginal Social Costs (MSC), Marginal

question 294

Multiple Choice

-The figure above shows the marginal social costs (MSC) , marginal private benefits (MB) , and marginal social benefits (MSB) of college education in Inland. If Inland's government wants to provide the efficient level of education, it must set tuition at ________ per year to ensure that ________ million students are enrolled.

• A) $5,000; 0.8
• B) $6,000; 0.6
• C) $7,000; 0.8
• D) $5,000; 0.6

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Definitions:

Export Demand

is the desire and willingness of foreign buyers to purchase goods and services from a country, influenced by factors such as price, quality, and exchange rates.

Elastic Demand

A situation in which the demand for a product or service greatly changes in response to a change in price. High price sensitivity.

Price Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Federal Gasoline Tax

A tax imposed by the federal government on the sale of gasoline, primarily used to fund transportation projects.