If Consumption of Education Creates an External Benefit, Then in Order

question 147

Multiple Choice

If consumption of education creates an external benefit, then in order to increase efficiency relative to the outcome determined by private decisions,

• A) more education must be produced.
• B) the same amount of education must be produced, and the price should be lower.
• C) less education must be produced, and the price should be higher.
• D) less education must be produced, and the price should be lower.
• E) less education must be produced at the same price.

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Definitions:

Recognizable Interest

An interest in property or a transaction that is legally identifiable and protectable.

Tenants in Common

A form of co-ownership where each tenant holds an undivided interest in property, but without right of survivorship.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, which the borrower pays to the lender as a fee over time.