Societies will provide assistance and incentive to encourage people to increase education because

Question

Quizplus · Accepted Answer

The optimal private level of educational attainment is the level that an individual will choose based on weighing the private benefits (such as higher income) against the private costs (such as tuition and time commitment). However, the socially optimal level of educational attainment takes into account the external benefits to society as a whole, such as a more educated workforce leading to innovation and economic growth. Societies may need to provide assistance (such as scholarships or financial aid) and incentives (such as tax credits) to encourage individuals to obtain education beyond their optimal private level and reach the socially optimal level.

Societies Will Provide Assistance and Incentive to Encourage People to Increase