Education Is Heavily Subsidized Through Public Schools and Government Scholarships

question 161

Multiple Choice

Education is heavily subsidized through public schools and government scholarships. This subsidization of education reflects the fact that

• A)a negative externality requires a subsidy to move the market equilibrium closer to the social optimum.
• B)the social cost of education exceeds the private cost of education.
• C)the social value of education exceeds the private value of education.
• D)the market-equilibrium quantity of education exceeds the optimal quantity of education.

---

Definitions:

Loud Noise

A strong and potentially disturbing sound of high amplitude.

Startle and Fear Response

The automatic reaction to unexpected or threatening stimuli, often involving physical movement away from the source of threat.

Natural Environment Type Phobia

An intense, irrational fear of objects or situations that occur in the natural environment, such as heights, storms, or water.

Situational Type Phobia

A type of anxiety disorder where an individual experiences intense fear or anxiety about specific situations or environments.