Federal subsidies to higher education have the effect of
A) increasing the number of people seeking higher education and lowering tuition
B) increasing the number of people seeking higher education and raising tuition
C) decreasing the number of people seeking higher education and lowering tuition
D) decreasing the number of people seeking higher education and raising tuition

Question

Quizplus · Accepted Answer

Federal subsidies to higher education encourage more people to pursue higher education, which in turn leads to an increased demand for college education. Since increased demand results in higher prices, this leads to higher tuition. Thus, federal subsidies to higher education have the effect of increasing the number of people seeking higher education and raising tuition.

Federal Subsidies to Higher Education Have the Effect of