Question.2619 - 16 points total (16 points) The total benefits (in millions of dollars) and total costs (in millions of dollars) of education (in millions of students per year) are detailed in the table below. a. (10 pts.) Complete the shaded cells of the table (each blank cell is worth 1 point). Education MSB TotalBenefits MSC Total Costs Net Benefits 0 — $0 — $0 $0 1 $10 $1 1 9 2 18 3 14 3 6 24 10 4 4 22 5 31 42 – 11 6 0 31 27 69 –38 b. (4 pts.) What is the optimal level of education (in millions of students per year)? Please explain why.c. (2 pts.) Which of the following statements is true i. The MSB increase as education increases, and MSC decrease as education increases. ii. The MSB decrease as education increases, and the MSC increase as education increases. iii. Both the MSB and MSC decrease as education increases. iv. All statements are correct.
Answer Below:
points xxxxx points xxx total xxxxxxxx in xxxxxxxx of xxxxxxx and xxxxx costs xx millions xx dollars xx education xx millions xx students xxx year xxx detailed xx the xxxxx below x pts xxxxxxxx the xxxxxx cells xx the xxxxx each xxxxx cell xx worth xxxxx Education xxx TotalBenefits xxx Total xxxxx Net xxxxxxxx mdash xxxxx ndash xxxxx b xxx What xx the xxxxxxx level xx education xx millions xx students xxx year xxxxxx explain xxx c xxx Which xx the xxxxxxxxx statements xx true x The xxx increase xx education xxxxxxxxx and xxx decrease xx education xxxxxxxxx ii xxx MSB xxxxxxxx as xxxxxxxxx increases xxx the xxx increase xx education xxxxxxxxx iii xxxx the xxx and xxx decrease xx education xxxxxxxxx iv xxx statements xxx correctMore Articles From Economics
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