4. 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. One way to obtain the economically efficient amount of college education is for governments to subsidize college education. Price of college ad iw post your wodylilamstxs svitizoq o gnitong d education ($) Supply P2 Po P₁ 0 Saben viitmanqo visione ori ai terW D₂= social benefit Q₁ D₁ = private benefit Qo Quantity of college education a. What is the size of the per-student subsidy that the government must provide to internalize the external benefits? (Note that the subsidy can be granted to the education institutions or to the students directly or indirectly; for example, through low-interest student loans.)
4. College education benefits society by producing a more employable workforce, reducing crime and creating a better informed citizenry. Thus, the social benefits of college education exceed the private benefits for any level of college education. One way to obtain the economically efficient amount of college education is for governments to subsidize college education. Price of college ad iw post your wodylilamstxs svitizoq o gnitong d education ($) Supply P2 Po P₁ 0 Saben viitmanqo visione ori ai terW D₂= social benefit Q₁ D₁ = private benefit Qo Quantity of college education a. What is the size of the per-student 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.)
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 13SCQ: A country called Sherwood is very heavily covered with a forest of 50,000 trees. There are proposals...
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