Which of the Following Are Put Forth as Reasons to Provide

question 10

Multiple Choice

Which of the following are put forth as reasons to provide subsidies to college students?

• A) Subsidies are needed to compensate students for the external benefits created by their college education.
• B) Subsidies are needed to increase the access of low-income individuals to higher education.
• C) Subsidies are needed to correct for capital market failures.
• D) All of the above.

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Definitions:

Farm Prices

The amount of money that farmers receive for their products, which can fluctuate based on supply, demand, and external factors.

Agricultural Risk Coverage

Agricultural Risk Coverage is a U.S. government program designed to protect agricultural producers from revenue losses due to market fluctuations.

Payments

The act of transferring money or its equivalent in exchange for goods, services, or to fulfill a legal obligation.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.