-The Table Above Provides Information About the Marginal Private Benefit

question 95

Multiple Choice

-The table above provides information about the marginal private benefit for 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 government undertakes public provision of the efficient amount of education, how much will the government charge for tuition?

• A) $16,000
• B) $4,000
• C) $8,000
• D) $12,000

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Definitions:

Conscious

The state of being aware of and able to think about one's own existence, sensations, thoughts, surroundings, and experiences.

Predispositions

The tendencies or inclinations to think, act, or feel in a particular way before any external influence.

Stimuli

External or internal factors that elicit physiological or psychological responses in an organism.

Traits

To Allport, distinguishing characteristics that guide behavior. Traits are measured on a continuum and are subject to social, environmental, and cultural influences. To Cattell, reaction tendencies, derived by the method of factor analysis, that are relatively permanent parts of the personality.