Reference no: EM13245621
Education is an example of a positive externality: acquiring more education benefits the individual student and having a more highly educated work force is good for the economy as a whole.
The accompanying table illustrates the marginal benefit to Sian per year of education and the marginal cost per year of education. Each year of education has a marginal external benefit to society equal to $8,000. Assume that the marginal social cost is the same as the marginal cost paid by an individual student.
a. Find Sian's market equilibrium number of years of education
b. Calculate the marginal social benefit schedule
Years of Education Sian's marginal benefit per year Marginal external benefit to society Marginal social benefit Sian's marginal cost per year
9 - - - -
10 $20,000 $8,000 $15,000
11 19,000 8,000 16,000
12 18,000 8,000 17,000
13 17,000 8,000 18,000
14 16,000 8,000 19,000
15 15,000 8,000 20,000
16 14,000 8,000 21,000
17 13,000 8,000 22,000
What is the socially optimal number of years of education?
c. You are in charge of education funding. Would you use a Pigouvian tax or a Pigouvian subsidy to induce Sian to choose the socially optimal amount of education?
How high would you set this tax or subsidy per year of education?
|
Compare and contrast each of the techniques with an emphasis
: Using the CSU Online Library and the unit reading assignment, explore the capital budgeting techniques covered in the unit, NP, PI, IRR, and Payback.
|
|
Determine what is the opportunity cost for desmond
: Desmond is attending university as a full time student this year. Desmond therefore had to give up his full time job in which he earned $25,000 per year. He also had to move away from his parents' home where he was paying $5,000 per year
|
|
Define a mixture of nitrogen and oxygen gas is collected
: A mixture of nitrogen and oxygen gas is collected by displacement of water 30 degrees celsius and 700 torr Hg pressure. If the partial pressure of nitrogen is 550 torr Hg, what is the partial pressure of oxygen? (Vapor pressure of H2O at 30 degree..
|
|
Explain chelating ligand if acid is added to the solution
: Why does EDTA^4- cease to function as chelating ligand if acid is added to the solution
|
|
Calculate the marginal social benefit schedule
: Education is an example of a positive externality: acquiring more education benefits the individual student and having a more highly educated work force is good for the economy as a whole.
|
|
What is the maximum voltage induced in the coil
: A flat coil enclosing an area of 0.08 m2 is rotating at 57 rev/s, If there are 998 turns on the coil, what is the maximum voltage induced in the coil
|
|
What would be recommend in terms of quantity changes
: Suppose you are a consultant for a firm that is perfectly competitive. The firm is worried only about its policies in the short run. What would you recommend in terms of quantity changes (raise, cut, shut down or stay put)
|
|
Define the pressure remaining constant the volume is raised
: A sample of gas has a volume of 35 liters and a temperature of 27 celsius. With the pressure remaining constant, the volume is raised to 50 liters. What is the new temperature
|
|
What is the resonance frequency
: Consider an LC circuit in which L = 470 mH and C = 0.102 µF. What is the resonance frequency and If a resistance of 1.30 k? is introduced into this circuit, what is the frequency of the damped oscillations
|