If Children Go to School and Become Productive Members of Society

question 24

Multiple Choice

If children go to school and become productive members of society,

• A) a negative externality is created by the schools.
• B) a positive externality is created by the schools.
• C) no externality is created by the schools.
• D) an externality is created that may be positive or negative.

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Definitions:

Public

Relating to or involving the people as a whole; often used to describe companies whose shares are available to be bought and sold by the general population.

Agency Costs

Expenses stemming from conflicts of interest between parties in a corporation, especially between owners and managers.

Stockholders

Individuals or entities that own shares of a company's stock, making them owners of a portion of the company.

Management

The process of dealing with or controlling things or people, often in the context of running a business, organization, or project.