If Education Creates Positive Externalities, Then:​

question 38

Multiple Choice

If education creates positive externalities, then:​

• A)private markets provide less than the socially optimal quantity of education.
• B)private markets provide more than the socially optimal quantity of education.
• 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.

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Definitions:

Extrinsic Rewards

Benefits or incentives given to an individual that are external to the task being performed, such as money, praise, or awards.

Creative Behaviour

Actions demonstrating ingenuity, originality, or the ability to generate innovative ideas and solutions.

Autonomy

The degree of independence or self-direction an individual or entity has to make their own choices and decisions.

Positive Affect

The extent to which an individual feels enthusiastic, active, and alert, representing a state of high energy and pleasurable engagement.