Suppose That an MBA Degree Creates No Externality Because the Benefits

question 132

Multiple Choice

Suppose that an MBA degree creates no externality because the benefits of an MBA are internalized by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?

• A)The equilibrium quantity of MBAs will equal the socially optimal quantity of MBAs.
• B)The equilibrium quantity of MBAs will be greater than the socially optimal quantity of MBAs.
• C)The equilibrium quantity of MBAs will be less than the socially optimal quantity of MBAs.
• D)There is not enough information to answer the question.

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Definitions:

PLC Motion Control System

A system utilized within a Programmable Logic Controller (PLC) to govern the movement and positioning of machines or mechanical parts.

Stepper Motor

A type of electric motor that moves in discrete steps, allowing precise control of position and speed, often used in automation and robotics.

Serial Data Transmission

The process of transmitting data one bit at a time, sequentially, over a communication channel.

DC

Direct Current, a form of electrical current that flows in one direction, commonly used in batteries and electronic devices.