Suppose That Elementary Education Creates a Positive Externality

question 129

Multiple Choice

Suppose that elementary education creates a positive externality.If the government does not subsidize education,then

• A) the equilibrium quantity of education will be 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:

Interval Estimate

An estimate of a population parameter that specifies a range within which the parameter is expected to lie.

Confidence Interval

A variety of data points, taken from sample statistics, with a high likelihood of encasing an unknown population trait's value.

Defective Systems

Refers to systems or products that fail to meet quality standards or performance expectations due to flaws or errors.

Population Mean

The average value of a characteristic in a population.