When people determine the quantity of education they will undertake, they ________ the external benefits. As a result, if education were left to an unregulated market, people would undertake too ________ education.
A) overvalue; much
B) ignore; much
C) ignore; little
D) overvalue; little
Question 2
A proportional income tax is defined as a tax for which
A) total taxes paid increase with the level of income.
B) total taxes paid are independent of the level of income.
C) the average tax rate increases with the level of income.
D) the average tax rate is the same at all levels of income.
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