If children go to school and become productive members of society,
A) a negative externality is created by the schools.
B) a positive externality is created by the schools.
C) no externality is created by the schools.
D) an externality is created that may be positive or negative.

Question

Quizplus · Accepted Answer

The schools create a positive externality as the education and skills acquired by the children benefit not just the children themselves but also the society as a whole. The society benefits from an educated and skilled workforce, increased innovation and productivity, and reduced social and economic problems associated with a lack of education. Therefore, the positive effects spill over to the society, and a positive externality is created.

If Children Go to School and Become Productive Members of Society