Which of the following expenditures to enhance productivity is most likely to convey a positive externality?
A) Megabank buys a new computer.
B) Nathalie pays her university tuition fees.
C) Exxon leases a new oil field.
D) General Motors buys a new drill press.

Question

Quizplus · Accepted Answer

Nathalie's payment of tuition fees is likely to enhance her own productivity, but it may also enhance the productivity of society as a whole by increasing the quality of the labor force. This positive externality occurs because, as Nathalie learns more, she may be better equipped to develop new technologies or provide services that benefit others in society.

Which of the Following Expenditures to Enhance Productivity Is Most