Assuming Education Results in a Positive Externality, Which of the Following

question 489

Multiple Choice

Assuming education results in a positive externality, which of the following statements is correct?

• A)The social cost of producing education exceeds the private cost of producing education.
• B)The positive externality can be depicted on a graph by the vertical distance between the supply curve and the social-cost curve.
• C)The socially optimal quantity of education will exceed the market equilibrium quantity of education.
• D)All of the above are correct.

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Definitions:

Hypothesis

A suggested explanation for an observable event, intended as an initial basis for additional exploration.

Explanandum

The subject or occurrence that is under investigation in a scientific exploration.

Auxiliary Assumptions

Additional premises or conditions presumed to be true to support an argument or theory.

Affirming The Consequent

An invalid mixed hypothetical syllogism in which the categorical premise affirms the consequent of the hypothetical premise and the conclusion affirms the antecedent.