If a Positive Externality Exists in the Provision of Education

question 63

Multiple Choice

If a positive externality exists in the provision of education when education is provided in a perfectly competitive market without government intervention, at the market equilibrium level of education:

• A) additional net gains to society are possible by reducing the level of education.
• B) additional net gains to society are possible by raising the level of education.
• C) the marginal social benefit of education equals the marginal social cost.
• D) additional net gains to society are not possible by either increasing or decreasing the level of education.

---

Definitions:

Root Cap

Protective cover of the root tip, whose cells are constantly replaced as they are ground off when the root pushes through rough soil particles.

Vessel Elements

Specialized tubular cells in plants that facilitate the transport of water and minerals.

Tracheids

Elongated cells in the xylem of vascular plants, serving in the transport of water and mineral salts.

Sieve-Tube Members

Plant cells that are part of the phloem and responsible for transporting sugars and other nutrients throughout the plant.