If Consumption of Education Creates a Positive Externality, Then in Order

question 115

Multiple Choice

If consumption of education creates a positive externality, then in order to increase efficiency relative to the outcome determined by private decisions,

• A)more education must be produced
• B)the same amount of education must be produced, and the price should be lower
• C)less education must be produced, and the price should be higher
• D)less education must be produced, and the price should be lower
• E)less education must be produced at the same price

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Definitions:

Special Use Loss

A financial loss incurred due to the specialized nature of property or equipment that limits its use or marketability.

Fundamental Breach

A severe violation of a contract that permits the aggrieved party to terminate the agreement and potentially seek damages.

Exemption Clause

Language within a contract designed to protect a party by restricting certain legal claims or liabilities.

Mitigate Loss

Actions taken to reduce the severity, seriousness, or painfulness of something, often used in the context of economics or law.