Because There Are Positive Externalities from Higher Education

question 87

Multiple Choice

Because there are positive externalities from higher education,

• A)private markets will under-supply college classes.
• B)private markets will over-supply college classes.
• C)the government should impose a tax on college students.
• D)government intervention cannot improve the market for college classes.

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Definitions:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Merchandise

Goods that are bought and sold in business, often referred to in the context of retail, wholesale, or e-commerce.

Maturity Date

The specified date on which the final payment of a loan or financial instrument, such as a bond, is due and payable.

Notes Payable

Written promises to pay specified sums of money at future dates, categorized as liabilities.