Exhibit 17-8 Exhibit 17-8 represents the consumer market for higher education.If people base their education decisions on the marginal social benefit of education, how many years of education will they get?

Question

Exhibit 17-8  Exhibit 17-8 represents the consumer market for higher education.If people base their education decisions on the marginal social benefit of education, how many years of education will they get?

Quizplus · Accepted Answer

At the point where MSB=MSC, the optimal amount of education is obtained. From Exhibit 17-8, this occurs at the intersection of the MSB curve and the MSC curve at 5 years of education. Therefore, people will get 5 years of education if they base their decisions on the marginal social benefit of education.

Exhibit 17-8 Exhibit 17-8 Represents the Consumer Market for Higher