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:

Epigenetic Mark

Chemical modifications to DNA that affect gene expression without altering the DNA sequence itself.

Epigenetic Marks

Chemical modifications to DNA or histones that affect gene expression without altering the DNA sequence, influencing development and health.

Stress Hormones

Biochemical substances, such as cortisol, that are released into the body in response to stress, affecting various bodily functions and emotional states.

Chromosomes

Structures within cells that contain DNA and carry genetic information critical for the development, functioning, and reproduction of organisms.