If College Education Produces a Positive Externality, the Government May

question 106

Multiple Choice

If college education produces a positive externality, the government may

• A)subsidize college education.
• B)try to convert college education into a negative externality.
• C)try to ignore college education.
• D)try to recover each student's marginal social benefit from education.
• E)tax education.

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Definitions:

Quality Cost Report

A document summarizing the costs associated with ensuring quality in products, including prevention, appraisal, and failure costs.

Test Equipment

Devices or instruments used to assess, measure, or inspect conditions, variables, or performance of materials or systems in various fields.

Internal Failure Costs

Costs incurred due to defects in products before they are shipped to customers, such as scrap and rework expenses.

Quality Cost Report

A document that identifies the costs associated with preventing, detecting, and correcting defects in products.