One Efficiency- Based Argument Against Government Subsidies for Post- Secondary

question 36

Multiple Choice

One efficiency- based argument against government subsidies for post- secondary education is that

• A) relative to the federal contribution, the provincial contribution to higher education is too high.
• B) few positive externalities are involved in the consumption of education.
• C) they would encourage people not to seek employment.
• D) most benefits from education accrue to society as a whole.
• E) the subsidy is essentially a transfer from lower- income, non- university- trained taxpayers to potentially higher- income- earning university students.