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Suppose That an MBA Degree Creates No Externality Because the Benefits

question 100

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 there are no government subsidies for MBAs, then which of the following statements is correct?


Definitions:

Forms

Documents with blank spaces for the insertion of details or information, often used for official purposes.

Tariffs

Taxes imposed on imported and, less commonly, exported goods with the aim of regulating trade, raising government revenue, or protecting domestic industries.

Domestic Industries

Industries within a country’s borders that produce goods and services for the local market.

Foreign Competition

The economic competition that domestic companies face from abroad in both local and international markets.

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