Suppose a state charges an in-state student $2,000 in tuition for a college education and charges an out-of -state student $10,000 in tuition. This differential
◦ is a result of the state subsidizing education for its residents.
◦ explains the difference between the demand curve for high-skilled and low-skilled labor.
◦ explains the difference between the supply curve for high-skilled and low-skilled labor.
◦ can be corrected via a negative income tax.
◦ is an example of the positive theories of income redistribution.