Suppose That Elementary Education Creates a Positive Externality

question 323

Multiple Choice

Suppose that elementary education creates a positive externality. If the government does not subsidize education, then

• A)the equilibrium quantity of education will be equal to the socially optimal quantity of education.
• B)the equilibrium quantity of education will be greater than the socially optimal quantity of education.
• C)the equilibrium quantity of education will be less than the socially optimal quantity of education.
• D)There is not enough information to answer the question.

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body for rapid action in threats.

Perspire

The process of sweating, or secretion of fluids by the sweat glands of the skin, often in response to heat or stress as a means of cooling the body.

Brain Imaging

Techniques that are used to capture images of the structure and function of the brain, aiding in diagnosis and research on neurological conditions.

fMRI

Functional Magnetic Resonance Imaging, a brain imaging technique that measures brain activity by detecting changes associated with blood flow.