Use the Figure Below to Answer the Following Questions

question 106

Multiple Choice

Use the figure below to answer the following questions.

Figure 16.3.3
-Refer to Figure 16.3.3. The figure shows the marginal private benefit and marginal social cost of a university education. If society's external benefit from university graduates is $10,000 each, then

• A)a subsidy of $10,000 per student paid to the universities achieves efficiency.
• B)a tax of $10,000 per student imposed on the universities achieves efficiency.
• C)10 million students per year is the efficient number students.
• D)a subsidy of $20,000 per student paid to the universities achieves efficiency.
• E)a tax of $5,000 per student paid by taxpayers achieves efficiency.

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Definitions:

Charles II

A king of England, Scotland, and Ireland who reigned during the Restoration period after the English Civil War.

Elizabeth I

Elizabeth I was the Queen of England and Ireland from 1558 until her death in 1603, known for her strong leadership during a period of religious turmoil and for fostering the English Renaissance.

James I

James I was the King of England and Ireland as James I (from 1603) and King of Scotland as James VI (from 1567), known for his authorization of the King James Bible.

War of Independence

A conflict fought by a nation or a group within a nation to gain political freedom and sovereignty from a colonial power or oppressive government.