College education tends to result in a negative externality because the recipient does not receive the full benefit of the education.

Question

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College education can provide both private and social benefits. Private benefits include increased earning potential, access to better job opportunities, and personal growth. However, there are also social benefits such as lower unemployment rates, higher tax revenue, and increased innovation. Therefore, a college education does not result in a negative externality as it results in both private and social benefits.

College Education Tends to Result in a Negative Externality Because