Suppose That Elementary Education Creates a Positive Externality

question 323

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 to 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:

Little Albert

An experimental subject in John B. Watson's study, demonstrating how emotions could be conditioned in humans.

Classical Conditioning

A learning process that involves creating associations between a naturally occurring stimulus and a previously neutral stimulus.

Latency Stage

A phase in Freudian psychosexual development occurring from around age 6 to puberty, characterized by a decreased focus on sexual drives and increased focus on external interests and activities.

Psychoanalysts

Professionals who practice psychoanalysis, a therapeutic approach developed by Freud, focusing on exploring unconscious motives and conflicts.