Question : The figure above shows the demand for college education (D), : 1241054

 

 

The figure above shows the demand for college education (D), the marginal social benefit of college education (MSB), and the marginal cost of the private schools (MC).

 

7) The figure above shows that the unregulated market equilibrium occurs at a tuition of ________ a year and ________ million students.

A) $15,000; 7.5

B) $25,000; 15

C) $15,000; 15

D) $25,000; 7.5

E) $38,000; 7.5

 

8) The figure above shows that at the unregulated market equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________.

A) exceeds; above the efficient quantity

B) exceeds; below the efficient quantity

C) is below; above the efficient quantity

D) is below; below the efficient quantity

E) equals; efficient

9) Based on the figure above, when the market is unregulated and is in equilibrium, the deadweight loss is

A) $86.25 million per year.

B) $56.25 million per year.

C) $48.75 million per year.

D) $37.50 million per year.

E) zero.

 

10) Using the figure above, suppose education is provided by public colleges, where tuition is set at $10,000 a year. Then, ________ million students are enrolled, and the taxpayers cover ________ of the marginal cost per student.

A) 15; $15,000

B) 7.5; $5,000

C) 3.5; none

D) 15; $25,000

E) 7.5; $15,000

 

11) Using the figure above, suppose education is provided by public colleges, where tuition is set at $10,000 a year. When the market is in equilibrium, the marginal social benefit is ________, the marginal cost is ________, and the number of students enrolled is ________.

A) $25,000; $25,000; efficient

B) $25,000; $10,000; inefficient

C) $15,000; $25,000; inefficient

D) $15,000; $15,000; efficient

E) $25,000; $15,000; inefficient

12) Using the figure above, suppose education is provided by public colleges. At what level should tuition be set to ensure the efficient number of students?

A) $10,000

B) $5,000

C) $20,000

D) $25,000

E) $15,000

 

13) Using the figure above, suppose a subsidy of $15,000 per student is provided to private colleges. Then, the market equilibrium occurs at a tuition of ________ a year and ________ million students.

A) $10,000; 15

B) $25,000; 15

C) $15,000; 15

D) $15,000; 7.5

E) $20,000; 20

 

14) Using the figure above, suppose a subsidy of $15,000 per student is provided to private colleges. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________.

A) exceeds; above the efficient quantity

B) exceeds; below the efficient quantity

C) is below; above the efficient quantity

D) is below; below the efficient quantity

E) equals; efficient

15) In the figure above, suppose a subsidy is provided to private colleges. What amount of subsidy will ensure the efficient number of students?

A) $10,000

B) $25,000

C) $15,000

D) $5,000

E) $20,000

 

16) In the figure above, suppose the government provides vouchers worth $15,000 per student per year. Then the market equilibrium occurs at a tuition of ________ a year and ________ million students.

A) $10,000; 15

B) $25,000; 15

C) $15,000; 15

D) $15,000; 7.5

E) $20,000; 20

 

17) In the figure above, suppose the government provides vouchers worth $15,000 per student per year. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________.

A) exceeds; above the efficient quantity

B) exceeds; below the efficient quantity

C) is below; above the efficient quantity

D) is below; below the efficient quantity

E) equals; efficient