If Education Creates Positive Externalities,then _____

question 95

Multiple Choice

If education creates positive externalities,then _____

• A)private markets provide a quantity of education that is less than socially optimal.
• B)private markets provide a quantity of education that is more than socially optimal.
• C)the marginal private benefit curve is higher than the marginal social benefit curve.
• D)the marginal private cost curve is higher than the marginal social cost curve.
• E)the government should impose a depletion tax.

---

Definitions:

Repurchase Agreements

Short-term borrowing for dealers in government securities, where the dealer sells the government securities to investors, usually on an overnight basis, with an agreement to buy them back.

Counterparty

The other organization or party involved in a financial transaction, opposite to the primary party initiating the transaction.

Futures Contract

A formal contract to purchase or sell a specific financial asset or commodity at an agreed-upon price on a future date.

Credit Risk

The risk of loss due to a borrower's inability to make payments on any type of debt.