Suppose That an MBA Degree Creates No Externality Because the Benefits

question 165

Multiple Choice

Suppose that an MBA degree creates no externality because the benefits of an MBA are captured by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?

• A) The equilibrium quantity of MBAs will equal the efficient quantity of MBAs.
• B) The equilibrium quantity of MBAs will be greater than the efficient quantity of MBAs.
• C) The equilibrium quantity of MBAs will be less than the efficient quantity of MBAs.
• D) The tuition paid by the student would be exceed the efficient amount.

Understand the interplay between interest rates and exchange rates in the global financial market.

Understand the role and growth of employee relations in organizations.

Recognize how internal communications contribute to organizational culture and employee morale.

Identify strategies to enhance corporate culture during organizational changes, such as mergers and acquisitions.

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Definitions:

Mineral Deposit

A naturally occurring accumulation of minerals that can be extracted for economic benefit.

Journalize

The act of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.

Straight-Line Method

A depreciation method that allocates an asset's cost evenly across its useful life.

Annual Depreciation

Definition: The portion of the cost of a fixed asset that is expensed on an annual basis through the process of depreciation.