One efficiency-based argument in favour of government subsidies for post-secondary education is that
A)the subsidy is essentially a transfer from lower-income,non-university-trained taxpayers to potentially higher-income-earning university students.
B)there are positive externalities involved in the consumption of education.
C)relative to the federal contribution,the provincial contribution to higher education is too low.
D)they would encourage people not to seek employment.
E)very few benefits from an individual's education accrue to society as a whole.

Question

Quizplus · Accepted Answer

Positive externalities refer to the benefits that society as a whole receives when an individual obtains an education, such as a more knowledgeable and skilled workforce or increased innovation. Government subsidies for post-secondary education can help to increase access to education, producing these positive externalities. This is an efficiency-based argument because it acknowledges that investing in education can produce broader societal benefits beyond the individual receiving the education.

One Efficiency-Based Argument in Favour of Government Subsidies for Post-Secondary