Suppose that a mayor of a large city believes strongly that education provides great benefits to the community and urges the state government to provide the district with more money. An economist would say that this reflects the Mayor's belief that:
A)since teachers are overpaid, the district needs more money to hire enough teachers for its classrooms.
B)there are positive external benefits associated with education.
C)there are nontrivial external costs associated with education.
D)public schools provide a higher quality education than private schools.

Question

Suppose that a mayor of a large city believes strongly that education provides great benefits to the community and urges the state government to provide the district with more money. An economist would say that this reflects the Mayor's belief that:
A)​since teachers are overpaid, the district needs more money to hire enough teachers for its classrooms.
B)​there are positive external benefits associated with education.
C)​there are nontrivial external costs associated with education.
D)​public schools provide a higher quality education than private schools.

Quizplus · Accepted Answer

The mayor's belief that education provides great benefits to the community suggests that they recognize the positive external benefits associated with education, such as a more knowledgeable workforce, improved public health, and lower crime rates. This would lead to the push for increased funding for education in the district.

Suppose That a Mayor of a Large City Believes Strongly