-The Table Above Provides Information About the Marginal Private Benefit

question 130

Multiple Choice

-The table above provides information about the marginal private benefit of education. The marginal private cost, which also equals the marginal social cost, of educating a student is $16,000 per year and does not change as more students are educated. There is an external benefit from education that is equal to $12,000 per student- year and does not change as more students are educated. If the market for education is competitive and unregulated, the equilibrium quantity of education will be _______ and the tuition will be _______.

• A) 20,000 student- years; $20,000
• B) 60,000 student- years; $12,000
• C) 80,000 student- years; $8,000
• D) 40,000 student- years; $16,000

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Definitions:

Standard Deviation

Standard deviation is a measure of the dispersion or variability in a set of data, quantifying how much individual data points deviate from the mean of the dataset.

T-Score

A standardized score that describes how far an individual's score lies from the mean of a distribution, measured in standard deviation units.

Confidence Estimate

A range or single value derived from a sample statistic that covers an unknown population parameter with a certain confidence level.

T-Distribution

Is a type of probability distribution that is symmetric and bell-shaped, used in statistics when the sample size is small and the population standard deviation is unknown.