The diagram below shows supply and demand diagrams (S and D) for some product.The government then imposes an excise tax.The new supply curve is ST.
FIGURE 18- 4
-One efficiency- based argument in favour of government subsidies for post- secondary education is that
A) there are positive externalities involved in the consumption of education.
B) very few benefits from an individual's education accrue to society as a whole.
C) the subsidy is essentially a transfer from lower- income,non- university- trained taxpayers to potentially higher- income- earning university students.
D) they would encourage people not to seek employment.
E) relative to the federal contribution,the provincial contribution to higher education is too low.
Correct Answer:
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