The concept of externalities means that subsidizing education can be justified on the grounds that as a student becomes better educated, the student will
A) earn a higher income.
B) enhance the lives of people around the student.
C) make contributions to the student's alma mater.
D) none of the above

Question

Quizplus · Accepted Answer

Externalities refer to the impact of one person's actions on the well-being of a bystander. Education has positive externalities because a better-educated individual can contribute positively to society, such as through increased civic engagement and productivity, which enhances the lives of others.

The Concept of Externalities Means That Subsidizing Education Can Be