-The Above Figure Shows the Marginal Private Benefit and Marginal

question 113

Multiple Choice

-The above figure shows the marginal private benefit and marginal social cost of a college education. A $10,000 subsidy to colleges results in a college charging tuition of

• A) $0.
• B) $10,000.
• C) $20,000.
• D) $30,000.

---

Definitions:

Carrying Amount

The balance of the bonds payable account (face amount of the bonds) less any unamortized discount or plus any unamortized premium.

Gain

A financial increase resulting from a transaction that exceeds the costs or purchase prices of the assets sold, not related to the primary operations.

Long-Term

Refers to holding or affecting a period extending over a long duration, typically beyond one year.

Investments

Financial assets acquired for income generation or capital appreciation.