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.

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Definitions:

Tidal Volume

The amount of air that is inhaled or exhaled during a normal breath.

Carbon Monoxide Detector

A device that detects the presence of the carbon monoxide gas in order to prevent carbon monoxide poisoning.

Hemoglobin

A protein in red blood cells responsible for transporting oxygen throughout the body.

Hypoxia

A condition in which the body or a region of the body is deprived of adequate oxygen supply at the tissue level.