AS Paper 1, June 2017Introduction to Markets and Market Failure
AS Paper 1, June 2017, Q5(b)
Which one of the following statements is correct?
Multiple choice1 mark
Context
Universities UK raised concerns about the proposal to reduce the maximum tuition fees (fee cap) for undergraduate courses in England from £9 000 to £6 000. It stated “This unfunded proposal to reduce the fee cap would damage the quality of experience our universities could deliver to students and remove opportunities for those seeking to benefit from a university education”.
AThe marginal social benefits exceed the marginal private benefits from university education
BUniversity education is an inferior good
CUniversity education is a public good
DThe social optimum equilibrium quantity is less than the market