One of the reasons community colleges receive government subsidies is that it is believed that education creates , and without subsidies the quantity produced would be the socially optimal quantity.

Question

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Education is believed to create positive externalities, meaning it benefits society beyond the individual receiving the education. Without subsidies, the quantity of education produced would be less than the socially optimal quantity, as individuals may not consider these external benefits in their decision to pursue education.

One of the Reasons Community Colleges Receive Government Subsidies Is