Education generates external benefits. When these external benefits are not considered, the market will produce
A) an efficient level of education.
B) more than the efficient level of education.
C) less than the efficient level of education.
D) zero units of education.

Question

Quizplus · Accepted Answer

External benefits of education, such as increased productivity and lower crime rates, are not fully captured by the market, leading to underinvestment in education compared to the socially optimal level.

Education Generates External Benefits