Answer the following statements true (T) or false (F)

1. Over the span of many years, a student and her family invest significant amounts of time and money into that student’s education. It is worth it, because median weekly earnings are about 10% higher for workers who have completed more education.
2. Cooperation between government-funded universities, academies, and the private sector has been shown to delay product innovation and repress whole new industries.
3. All goods and services with positive externalities are also public goods.
4. Government spending and taxes are not the only way to provide public goods.
5. Because nobody owns the ocean, or the creatures that live in it, no one has the ability to protect these resources and ensure they are responsibly harvested.


1. True
This statement is true. Over the span of many years, a student and her family invest significant amounts of time and money into that student’s education. Once the numbers are crunched, median weekly earnings are about 10% higher for workers who have completed more education.
2. False
This statement is false. Cooperation between government-funded universities, academies, and the private sector can spur product innovation and create whole new industries.
3. False
This statement is false. Not all goods and services with positive externalities are public goods. Private companies can profitably invest in things that provide social benefits.
4. True
This statement is true. Government spending and taxes are not the only way to provide public goods. In some cases, markets can produce public goods.
5. False
This statement is false. Because nobody owns the ocean, or the creatures that live in it, no one individual has an incentive to protect these resources and responsibly harvest them. To address the issue of overharvesting marine resources, economists typically advocate simple devices like fishing licenses, harvest limits, shorter fishing seasons, and outright bans when populations drop too low.

Economics

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Economics