The Figure Shows the Supply Curve (S) and the Demand

question 326

Multiple Choice

The figure shows the supply curve (S) and the demand curve (D) for college education. The external benefit from college education is $6,000 per student per year and is constant.
-In the figure above, if the government provides the efficient amount of education, what is the tuition?

• A) $10,000 per year
• B) $14,000 per year
• C) $8,000 per year
• D) $6,000 per year

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Definitions:

Productive Skills

Productive skills are those related to the output of work, such as writing and speaking, which enable individuals to produce goods, services, or ideas effectively.

Highly Educated Workers

Individuals who have attained a high level of education, often holding college degrees or higher, which usually results in specialized skills.

Less-Educated Workers

Workers with lower levels of formal education, often facing different employment opportunities and wage scales compared to more educated workers.

Minimum Wage

The lowest hourly, daily, or monthly remuneration that employers may legally pay to workers.