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:

Serial Processing

A cognitive approach where the brain processes information in a linear, step-by-step sequence, one item at a time.

Bottom-up Processing

A cognitive process where perception starts with an incoming stimulus and builds up to the comprehensive perception, without preconceived cognitive models.

Parvo Cells

Ganglion cells that, because of their sensitivity to differences in hue, are particularly suited to perceiving color and form.

Hue

Hue refers to the distinct characteristic of color perceived by the eye, fundamentally describing colors such as red, blue, green, etc., based on their wavelength in the visible spectrum.