Overfishing along the coastline of Helsking village led the government to impose a fee on the boats used for fishing. The fishermen were charged $50 on each boat they sent out for fishing. The following table shows the total pounds of fish caught per hour and the number of boats used for fishing.Table 13.2

-If education has positive externalities, _____.

Question

Overfishing along the coastline of Helsking village led the government to impose a fee on the boats used for fishing. The fishermen were charged $50 on each boat they sent out for fishing. The following table shows the total pounds of fish caught per hour and the number of boats used for fishing.Table 13.2
 
-If education has positive externalities, _____.

Quizplus · Accepted Answer

Positive externalities mean that the benefits of consumption of a good or service accrue not only to the consumer but also to society as a whole. Education is a classic example of a good with positive externalities because educated individuals contribute to the overall economic and social well-being of society. However, because private markets fail to account for these external benefits, the government can help to bring about a more efficient allocation through subsidies. By providing subsidies to education, the government incentivizes more people to pursue higher education, resulting in greater benefits to society.

Overfishing Along the Coastline of Helsking Village Led the Government