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.

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Definitions:

Proximal Convoluted Tubule

A section of the nephron in the kidney responsible for the reabsorption of water, ions, and nutrients from the urine.

Distal Convoluted Tubule

A portion of the kidney nephron that functions in the selective reabsorption and secretion of ions and molecules.

Nephron Loops

Long, looping segments of a nephron in the kidney, crucial for concentrating urine and conserving water.

Collecting Ducts

Collecting ducts are part of the kidney's nephrons, funneling urine from the nephrons to the ureters.