stion Completion Status: d.An increase in the price of coffee QUESTION 29 In the

Question

stion Completion Status: d.An increase in the price of coffee QUESTION 29 In the market for education, the ever-increasing faculty salaries and costs of using technology in learning are blamed for increases in tuition fees. On the basis of this argument, which of the following statements is true? a. Tuition fees increase due to an increase in the rate of interest on education loans. b. Tuition fees increase due to a decrease in demand for education. c. Tuition fees increase due to an increase in the supply of education facilities d. Tuition fees increase due to an increase in demand for education. QUESTION 30 The pollution emitted by a factory is an example of b.an externality Click Save and Subrnit to save and subrmit. Click Save Al to save all answers

Explanation / Answer

Question 29

Faculty in field of education acts as resource and like all other resources, demand for faculty is derived demand. The increasing salaries of faculty reflects the increse in demand for teachers which in turn is due to increase in demand for education.

Technology enables educational institutes to cater greater number of students. Increased use of technology, therefore, points towards the catering of greater number of students indicating an increase in demand for education.

Given the supply of education, increase in demand for education leads to increase in tuition fees.

Thus, the correct statement is tuition fees increases due to an increase in demand for education.

Hence, the correct answer is the option (d).

Question 30

Pollution emitted by a factory is an unwanted by product of its production process and is not taken in to account in the cost of production of concerned factory, even though, it impacts the well-being of society, in general, in adverse manner.

When an action undertaken by a party creates unintended effect on third party whether positive or negative then such effect is termed as externality.

So, the pollution emitted by a factory is an example of an externality.

Hence, the correct answer is the option (b).

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