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.

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Definitions:

Countersuggestion

A suggestion that evokes an opposite response from the prospect.

Indirect Suggestion

A technique used in sales and communication wherein an idea or preference is implied or suggested rather than explicitly stated, influencing the receiver's thoughts or actions subconsciously.

Dramatics

The art of producing and performing dramatic works; also refers to actions or behaviors that are exaggerated or emotional.