Suppose a State Charges an In-State Student $2000 in Tuition

question 9

Essay

Suppose a state charges an in-state student $2000 in tuition for a college education and charges an out-of -state student $10,000 in tuition.This differential
A) is a result of the state subsidizing education for its residents.
B) explains the difference between the demand curve for high-skilled and low-skilled labor.
C) explains the difference between the supply curve for high-skilled and low-skilled labor.
D) can be corrected via a negative income tax.
E) is an example of the positive theories of income redistribution.

• A) is a result of the state subsidizing education for its residents.
• B) explains the difference between the demand curve for high-skilled and low-skilled labor.
• C) explains the difference between the supply curve for high-skilled and low-skilled labor.
• D) can be corrected via a negative income tax.
• E) is an example of the positive theories of income redistribution.

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Definitions:

Antitrust Jurisdiction

The legal authority granted to courts or regulatory bodies to oversee, enforce, and regulate laws that promote competition and prevent monopolistic practices.

Federal

Federal refers to the central or national government and its functions, laws, and powers within a country, as distinguished from state, provincial, or local governments.

Monopolization

The dominance of a market sector by a single company, restricting competition and controlling prices and production.

Sherman Act

A landmark federal statute in the field of U.S. antitrust law passed by Congress in 1890, which prohibits monopolistic business practices and promotes competition.