Most governments subsidize basic education because
A) there are external costs associated with well educated citizens.
B) the marginal social benefit of education is greater than the marginal private benefit.
C) of the existence of private schools.
D) people do not value education enough.

Question

Quizplus · Accepted Answer

Governments subsidize education because the marginal social benefit, which includes benefits to society such as increased productivity and civic engagement, exceeds the marginal private benefit received by the individual.

Most Governments Subsidize Basic Education Because