Post-secondary education in Canada is subsidized.This fact suggests that i.less than the efficient amount of education would be provided by an unregulated market.
Ii.the marginal private benefit from education equals the marginal social benefit from education.
Iii.post-secondary education has no externalities.
Which statements are correct?
A)i only
B)ii only
C)iii only
D)i and ii only
E)i,ii,and iii

Question

Quizplus · Accepted Answer

Subsidization suggests that the market alone would provide less than the socially optimal amount of education, indicating a positive externality. Therefore, statement i is correct. Statements ii and iii are incorrect because they imply no externalities, which contradicts the need for subsidies.

Post-Secondary Education in Canada Is Subsidized