If a positive externality exists in the provision of education when education is provided in a perfectly competitive market without government intervention, at the market equilibrium level of education:
A. the marginal social benefit of education equals the marginal social cost.
B. additional net gains to society are possible by raising the level of education.
C. additional net gains to society are not possible by either increasing or decreasing the level of education.
D. additional net gains to society are possible by reducing the level of education.
Answer: B
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Aggregate demand is the total demand for the final goods and services produced in an economy.
Answer the following statement true (T) or false (F)
In the above figure, which point represents an economy which is at the peak part of a business cycle?
A) point F B) point G C) point I D) point K
How does the imposition of a penalty for possessing an illegal drug influence demand, supply, price, and the quantity of the drug consumed?
What will be an ideal response?
Which of the following is TRUE?
A) Generally, the lower the country's average income, the less administrative, scientific, and technical capacity it has to design and enforce standards. B) National priorities do not change as income changes—countries of all income levels seem to share the same priorities and values. C) Differences in income are always an obstacle to the harmonization of standards. D) The adoption of a common set of rules usually narrows the market and raises prices.