Most Economists Believe That There Are Positive Externalities in Education

question 233

Multiple Choice

Most economists believe that there are positive externalities in education. One can conclude that a free market would fail to give the socially optimal outcome because the equilibrium:

• A) price and quantity would be too high.
• B) price would be too low and quantity would be too high.
• C) price and quantity would be too low.
• D) price would be too high and quantity would be too low.
• E) price and quantity would be just right.

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Definitions:

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