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.

---

Definitions:

Net Operating Income

A company's total earnings from its operations, exclusive of taxation and interest.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of the shareholders.

Sales

The total amount of goods or services sold by a company within a specific period, generating revenue.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific business segment, department, or product and would disappear if the segment was eliminated.