Suppose That Elementary Education Creates a Positive Externality

question 99

Multiple Choice

Suppose that elementary education creates a positive externality. If the government subsidizes education by an amount equal to the per-unit externality it creates, then

• A)the equilibrium quantity of education will equal 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:

Social Groups

Collections of individuals who interact with each other, share similar characteristics, and collectively have a sense of unity or identity.

Classical Conditioning

Type of learning whereby an unconditioned stimulus that elicits a specific response is paired with a neutral stimulus so that the response becomes conditioned.

Imprinting

Learning to make a particular response to only one type of animal or object.

Sexual Selection

Changes in males and females, often due to male competition and female selectivity, leading to increased fitness.