Figure 5-6 College Education Benefits Society by Producing a More

question 122

Multiple Choice

Figure 5-6 College education benefits society by producing a more employable workforce,reducing crime and creating a better informed citizenry.Thus,the social benefits of college education exceed the private benefits for any level of college education.This is illustrated in Figure 5-6.
-Refer to Figure 5-6.One way to obtain the economically efficient amount of college education is for governments to subsidize college education.What is the size of the per-student Pigovian subsidy that the government must provide to internalize the external benefits? (Note that the subsidy can be granted to the education institutions or to the students directly or indirectly; for example,through low-interest student loans.)

• A)P₂-P₀
• B)P₂-P₁
• C)P₀-P₁
• D)P₁

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Definitions:

Structure

The arrangement of atoms within a molecule which dictates its physical and chemical properties.

Sequence of Reagents

The ordered list of chemical substances (reagents) used in a multi-step chemical synthesis, detailing the progression of reactions.

Transformation

A thorough or dramatic change in form or appearance, often referring to the alteration of a substance's structure in chemical reactions.

M-cresol

An organic compound, a type of methylphenol, where the methyl group is positioned meta to the hydroxyl group on a benzene ring.