When the government pays part of my university education, it is
A) internalizing an external cost.
B) using taxes to discourage an external cost.
C) subsidizing an external benefit.
D) using direct regulation to discourage an external cost.

Question

Quizplus · Accepted Answer

When the government pays part of university education, it is recognizing the positive externalities (external benefits) that higher education provides to society, such as a more educated workforce, higher productivity, and potentially lower crime rates. By subsidizing education, the government is encouraging more individuals to pursue higher education, thereby internalizing the external benefits.

When the Government Pays Part of My University Education, It