If Consumption of Education Creates an External Benefit, Then in Order

question 147

Multiple Choice

If consumption of education creates an external benefit, 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:

R&D Expenditures

Costs associated with the investigation and testing of new products or innovations.

FASB Justifications

Rationales and explanations provided by the Financial Accounting Standards Board for its accounting standards and practices.

Carrying Value

Also known as book value, it's the value of an asset or liability according to a company's balance sheet, factoring in depreciation and amortization.

Economic Benefits

The gains received by individuals or organizations from their economic activities.