When wealthy alumni provide charitable contributions to their universities to reduce the tuition payments of current students, it is an example of

Question

Quizplus · Accepted Answer

This is an example of an attempt to internalise a positive externality. The wealthy alumni are providing charitable contributions to reduce the tuition payments of current students, which benefits society as a whole by creating more opportunities for education and reducing the burden of student debt. By internalising this positive externality, the alumni are taking responsibility for the positive impact their actions have on society.

When Wealthy Alumni Provide Charitable Contributions to Their Universities to Reduce