If the consumption of education creates a positive externality,then to increase efficiency relative to the outcome determined by private decisions,_____
A)more public education should 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.

Question

Quizplus · Accepted Answer

If the consumption of education creates a positive externality, then the social benefit of education is greater than its private benefit, meaning that individuals may under-consume education. To increase efficiency, more public education should be produced to ensure that the optimal level of education is reached for society as a whole.

If the Consumption of Education Creates a Positive Externality,then to Increase