Suppose each person in a community had to pay for his or her own education from kindergarten through high school. One would expect that:
A) less education would be acquired, since society has not considered the positive external benefits of education.
B) more education would be acquired, since society has not considered the positive external benefits of education.
C) the optimal amount of education would be acquired by community members, since they each paid for the amount of education they wanted.
D) a Pigouvian tax would ensure the optimal amount of education.

Question

Quizplus · Accepted Answer

If individuals had to pay for their own education, they might acquire less education because they may not consider the positive external benefits that education provides to society, such as a more informed citizenry and economic growth.

Suppose Each Person in a Community Had to Pay for His