Because there are positive externalities from higher education,
A)private markets will under-supply college classes.
B)private markets will over-supply college classes.
C)the government should impose a tax on college students.
D)government intervention cannot improve the market for college classes.

Question

Quizplus · Accepted Answer

Positive externalities mean that the benefits of education spill over to society beyond the individual student. Private markets do not consider these external benefits in their decision-making, therefore they will under-supply college classes as they do not capture the full social benefit.

Because There Are Positive Externalities from Higher Education