-The Marginal Cost of Educating a Student Is $30,000, and This

question 67

Multiple Choice

-The marginal cost of educating a student is $30,000, and this cost is independent of the number of students. The figure above shows the marginal private benefit that a student receives from education. An independent government agency determines that the efficient number of students is 40,000. What subsidy per student must be given to colleges to make the efficient number of students undertake education?

• A) It depends on the demand.
• B) $20,000
• C) $30,000
• D) $10,000

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Definitions:

Picket

A method of protest in which individuals (often labor union members) demonstrate at a particular location to voice their grievances or demands, frequently outside their place of work.

Unsafe Working Conditions

Work environments that pose hazards to employees' health or safety, often in violation of occupational safety and health standards.

Wagner Act

A foundational piece of U.S. labor law that established the rights of employees to organize into unions, engage in collective bargaining, and take collective action such as strikes.

Supervisor

An individual who has the authority and responsibility to oversee and guide the work of others in an organizational setting.