Education leads to public benefits above and beyond those enjoyed by individuals deciding on whether or not to enroll in college. The government is weighing an education policy intervention. In this context, which of these statements is true? a. Leave this market alone; it is efficient and welfare is already maximized. b. A Pigouvian tax on tuition will improve efficiency in this market by aligning private costs and social costs. c. Giving a tax break to families with children enrolled in college will improve market efficiency. d. College is already too expensive. Setting a binding price ceiling on tuition will improve market efficiency
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Education leads to public benefits above and beyond those enjoyed by individuals deciding on whether or not to enroll in college. The government is weighing an education policy intervention. In this context, which of these statements is true?
a. Leave this market alone; it is efficient and welfare is already maximized.
b. A Pigouvian tax on tuition will improve efficiency in this market by aligning private
c. Giving a tax break to families with children enrolled in college will improve
d. College is already too expensive. Setting a binding
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