Why Is College Becoming More of a Necessity

question 48

Multiple Choice

Why is college becoming more of a necessity?

• A)There are more jobs on the market.
• B)Technology is becoming more sophisticated.
• C)Everyone else is going to college.
• D)Your parents are becoming too demanding.

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Definitions:

Pigouvian Subsidies

Financial incentives given by the government to encourage activities that have positive external effects on society.

Government Transfers

Payments by the government to individuals for which no good or service is provided in return.

Deadweight Loss

Deadweight loss is the decrease in total surplus (both consumer and producer surplus) that occurs when a market is not in perfect competition, typically due to inefficiencies like taxes, subsidies, or monopolies.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been accounted for.