Suppose that each person in a community had to pay for his or her own education from kindergarten through high school.One would expect that:
A)less education would be acquired than at present since an individual may not consider the positive external benefits of education to society.
B)more education would be acquired than at present since an individual may not consider the positive external benefits of education to society.
C)the optimal amount of education would be acquired by community members since they each paid for the amount of education they wanted.
D)a Pigouvian tax would ensure the optimal amount of education.

Question

Quizplus · Accepted Answer

When individuals must pay for their own education, they may not consider the positive external benefits of education to society, such as a more productive workforce or a more educated citizenry. As a result, they may not value education as highly as is socially optimal, leading to less education being acquired overall.

Suppose That Each Person in a Community Had to Pay