-The Marginal Cost of Educating a Student Is $30,000, and This

question 79

Multiple Choice

-The marginal cost of educating a student is $30,000, and this cost is independent of the number of students. The figure above shows the marginal private benefit that a student receives from education. An independent government agency determines that the efficient number of students is 40,000. What subsidy per student must be given to universities to make the efficient number of students undertake education?

• A) It depends on the demand.
• B) $10,000
• C) $30,000
• D) $20,000

Differentiate between the types of risks (market risk vs. firm-specific risk) and their impacts on stock valuations.

Understand the concept of the short-run aggregate supply curve and its characteristics.

Explain the relationship between price levels and output in the short-run.

Identify factors that cause movements along the short-run aggregate supply curve.

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Definitions:

Passive Avoidance

A learning process in which an individual learns to refrain from certain behaviors to avoid a negative outcome.

Mild Punishing Stimuli

Stimuli that are not severely harmful or painful but are used to decrease the likelihood of a behavior recurring.

Strong Punishing Stimulus

A stimulus that significantly decreases the likelihood of a behavior recurring by causing discomfort or distress when the behavior is exhibited.

Punishment

A consequence that reduces the likelihood of the behavior that it follows.