Suppose That an MBA Degree Creates No Externality Because the Benefits

question 165

Multiple Choice

Suppose that an MBA degree creates no externality because the benefits of an MBA are captured by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?

• A) The equilibrium quantity of MBAs will equal the efficient quantity of MBAs.
• B) The equilibrium quantity of MBAs will be greater than the efficient quantity of MBAs.
• C) The equilibrium quantity of MBAs will be less than the efficient quantity of MBAs.
• D) The tuition paid by the student would be exceed the efficient amount.

Apply conditional probability concepts to revise the probabilities of events based on additional information.

Distinguish between different types of probabilities (posterior, joint, marginal) and know their applications.

Apply probability concepts to real-world scenarios and understand their practical implications.

Use Venn diagrams to visually represent events and their probabilities.

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Definitions:

Labour Content

The total amount of work or labor hours required to complete a unit of production.

Shift

A work period in a day during which an employee is scheduled to work, typically characterized by its start time, such as day shift or night shift.

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A company engaged in the production of domestic or commercial electrical or mechanical devices.

Industrial Location Analysis

The process of evaluating the best geographical location for a company's manufacturing activities based on factors like costs, supplies, and market access.