Scenario 10-1
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 400th gallon of gasoline entails the following:
  a private cost of $2.83;
  a social cost of $3.12;
  a value to consumers of $3.23.
-Education yields positive externalities. For example,
A)colleges and universities have benefited, in recent years, from increases in tuition paid by students.
B)as a result of earning a college degree, a person becomes a more productive worker and benefits by earning higher wages.
C)a more educated population tends to result in lower crime rates.
D)when students go to school, they reinforce the demand for teachers.

Question

Scenario 10-1
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 400th gallon of gasoline entails the following:
   a private cost of $2.83;
   a social cost of $3.12;
   a value to consumers of $3.23.
-Education yields positive externalities. For example,
A)colleges and universities have benefited, in recent years, from increases in tuition paid by students.
B)as a result of earning a college degree, a person becomes a more productive worker and benefits by earning higher wages.
C)a more educated population tends to result in lower crime rates.
D)when students go to school, they reinforce the demand for teachers.

Quizplus · Accepted Answer

A more educated population tends to result in lower crime rates, which is an example of a positive externality of education.

Scenario 10-1 The Demand Curve for Gasoline Slopes Downward and the Supply