By paying college students a subsidy equal to the external benefit from a college education, the government will cause students
to internalize the externality. That is, the external benefit from a college education will become a __________ (a) social benefit received by producers, and the supply curve for college educations will shift up.
(b) social benefit received by producers, and the supply curve for college educations will shift down.
(c) private benefit received by college students, and the demand curve for college educations will shift down.
(c) private benefit received by college students, and the demand curve for college educations will shift up
Private benefits received by college students and the demand curve for college education will shift up.
Explanation:
Subsidies started in 1800. The student's subsidy was started around world war II. These subsidies aid programs aim to help students. It is processed in which the higher tea payer will pay the tax and that tax used in education services for the student. It is related to demand and supply. But there are most of the federal subsidy suffered from a large amount of fraud, waste, and abuse. Health institution, Medicaid, school lunches all suffers from these heavy downfalls and a large amount of fraud and waste of subsidy.
