-The Table Above Provides Information About the Marginal Private Benefit

question 314

Multiple Choice

-The table above provides information about the marginal private benefit for education. The marginal private cost, which also equals the marginal social cost, of educating a student is $16,000 per year and does not change as more students are educated. There is an external benefit from education that is equal to $12,000 per student year and does not change as more students are educated. If the government undertakes public provision of the efficient amount of education, how much will the government charge for tuition?

• A) $4,000
• B) $8,000
• C) $12,000
• D) $16,000

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Definitions:

Temperament

An individual's inherent personality and behavioral style, often considered as the basis of personality development.

Early Childhood

A critical developmental phase covering the period from birth to around 8 years old, focusing on rapid physical, cognitive, and emotional growth.

Psychosocial Stage

A concept in Erik Erikson's theory referring to the eight stages of human development, each characterized by a different conflict that must be resolved.

Sense of Trust

A foundational belief in the reliability and predictability of the world and people around one, typically developed in early childhood.