Most governments subsidize basic education because A) there ...

[Caiter2013]

Most governments subsidize basic education because
 
  A) there are external costs associated with well educated citizens.
  B) the marginal social benefit of education is greater than the marginal private benefit.
  C) of the existence of private schools.
  D) None of the above answers are correct.

Question 2

Consider the change in the price of a book depicted in the above figure. The original budget line is BC. The new budget line is BD. As a result of this price change, the income effect can be represented by a movement from
 
  A) point E to point F.
  B) point G to point A.
  C) point G to point F.
  D) point A to point F.

[aadams68]

Answer to Question 1

B

Answer to Question 2

A

[Caiter2013]

TYSM

[cpetit11]

Excellent