When Wealthy Alumni Provide Charitable Contributions to Their Universities to Reduce

question 1

Multiple Choice

When wealthy alumni provide charitable contributions to their universities to reduce the tuition payments of current students, it is an example of

• A) an attempt to internalize a positive externality.
• B) an attempt to internalize a negative externality.
• C) a Pigovian tax.
• D) a command-and-control policy.

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Definitions:

Sample to Sample

Variation in statistics, refers to the differences observed between various samples drawn from the same population due to randomness.

Scatterplot

A graphical representation that uses dots to represent the values obtained for two different variables, illustrating the possible relationship between them.

Connecting Points

The process or technique of determining a path or drawing a line between multiple points in a space.

Option

In finance, it refers to a contract which gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.