Your student group is setting up an internship fair. You invite companies looking for interns and students looking for internships and offer them a place to connect. The UofT wants to encourage this event and offers a per-internship of $5000. Whom do you recommend they give the $5000 to?--the student who gets the internship, the company that hires the student or split the money between them equally? What would be the effect of a $5000 subsidy on the number of internships? Why?
Your student group is setting up an internship fair. You invite companies looking for interns and students looking for internships and offer them a place to connect. The UofT wants to encourage this event and offers a per-internship of $5000. Whom do you recommend they give the $5000 to?--the student who gets the internship, the company that hires the student or split the money between them equally? What would be the effect of a $5000 subsidy on the number of internships? Why?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Your student group is setting up an internship fair. You invite companies looking for interns and students looking for internships and offer them a place to connect. The UofT wants to encourage this event and offers a per-internship of $5000. Whom do you recommend they give the $5000 to?--the student who gets the internship, the company that hires the student or split the money between them equally? What would be the effect of a $5000 subsidy on the number of internships? Why?
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