Question 11 of 18 Map a Sapling Learning macmillan learning Policymakers realize that while educa…

Question 11 of 18 Map a Sapling Learning macmillan learning Policymakers realize that while education creates a positive benefit for those who obtain it, it also <a href=creates external benefits for the community where the educated individual resides. The figure below depicts the marginal social cost (MSC) and the marginal social benefit (MSB) associated with education. Move the point, P, to the point representing the optimal level of education. 100 What is the socially optimal number of years of schooling for each citizen? MSC 90 Number 80 70 years 60 50 40 Assuming that the marginal social benefits of education are completely externalized from the 30 educated individual. How large would a Pigouvian subsidy need to be in order to reach this optimal 20 level of schooling? 10 MSB Number 2 4 6 8 10 12 14 16 18 20 22 Years of schooling thousand Previous Next Save And Exit ” src=”https://files.transtutors.com/cdn/questions/transtutors006/images/transtutors006_3925d167-1dce-4e6e-991e-b765efc06d37.png”>

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Question 11 of 18 Map a Sapling Learning macmillan learning Policymakers realize that while education creates a positive benefit for those who obtain it, it also creates external benefits for the community where the educated individual resides. The figure below depicts the marginal social cost (MSC) and the marginal social benefit (MSB) associated with education. Move the point, P, to the point representing the optimal level of education. 100 What is the socially optimal number of years of schooling for each citizen? MSC 90 Number 80 70 years 60 50 40 Assuming that the marginal social benefits of education are completely externalized from the 30 educated individual. How large would a Pigouvian subsidy need to be in order to reach this optimal 20 level of schooling? 10 MSB Number 2 4 6 8 10 12 14 16 18 20 22 Years of schooling thousand Previous Next Save And Exit