Because there are external benefits from higher education:
A)private markets will over-supply college classes.
B)government intervention cannot improve the market for college classes.
C)the government should impose a tax on college students.
D)private markets will under-supply college classes.(True Answer )Correct

Question

Quizplus · Accepted Answer

Private markets will under-supply college classes because they do not take into account the external benefits that higher education provides to society as a whole. Therefore, in order to ensure that enough individuals receive a college education, the government may need to intervene by subsidizing or directly providing higher education.

Because There Are External Benefits from Higher Education