If Consumption of Education Creates a Positive Externality, Then in Order

question 115

Multiple Choice

If consumption of education creates a positive externality, then in order to increase efficiency relative to the outcome determined by private decisions,

• A)more education must be produced
• B)the same amount of education must be produced, and the price should be lower
• C)less education must be produced, and the price should be higher
• D)less education must be produced, and the price should be lower
• E)less education must be produced at the same price

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Definitions:

Copyrights

Legal rights granted by the government to creators for the protection of their original works for a certain period.

Coal Mines

Locations where coal is extracted from the earth, often involving extensive mining operations.

Rental Expenses

Rental expenses are costs incurred in the operation, maintenance, and management of rental property and can include repairs, property taxes, and mortgage interest, often deductible for tax purposes.

Schedule E

A form used by taxpayers in the United States to report income and losses from rental property, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.