Most governments subsidise basic education because
A) of the existence of private schools.
B) the marginal social benefit of education is greater than the marginal private benefit.
C) there are external costs associated with well- educated citizens.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The marginal social benefit of education is considered greater than the marginal private benefit because education not only benefits the individual receiving it but also has positive spillover effects on society, such as increased productivity, better health outcomes, and reduced crime rates. Governments subsidize education to encourage more investment in it than would occur if individuals were only considering their private benefits.

Most Governments Subsidise Basic Education Because