If Tuition at a College Is $30,000 and the External

question 127

Multiple Choice

If tuition at a college is $30,000 and the external benefit of graduating from this college is $10,000,then
i.in the absence of any government intervention,the number of students graduating is less than the efficient number.
ii.the government could increase the number of graduates by giving the college a $10,000 subsidy per student.
iii.the government could increase the number of graduates by giving the students $10,000 vouchers.

• A) i only
• B) i and ii
• C) i and iii
• D) ii and iii
• E) i, ii, and iii

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Definitions:

Oak Tree

A type of tree or shrub belonging to the genus Quercus, known for its strength, longevity, and acorn production.

Plants

Members of the archaeplastid supergroup, distinguished by development of sporophytes from multicellular embryos enclosed in maternal tissues; also called land plants.

Protists

A diverse group of eukaryotic organisms, which are mostly unicellular, including amoebas, algae, and protozoa.

Swamp Habitat

A type of wetland ecosystem characterized by waterlogged soils and diverse plant and animal life, often with trees and standing water.