If education produces positive externalities,what would we expect
A)government to tax education
B)government to subsidize education
C)people to realize the benefits and therefore cause demand for education to increase
D)universities to relax admission requirements

Question

Quizplus · Accepted Answer

Positive externalities of education mean that the benefits of education spill over to society as a whole, beyond just the individual receiving the education. As a result, the private market may not produce enough education, because individuals do not take into account the full social benefits. Therefore, it makes sense for the government to subsidize education to increase the overall level of education and the positive spillover effects it creates for society.

If Education Produces Positive Externalities,what Would We Expect