If a positive externality results from the consumption of higher education, then the marginal benefit students receive from education:
A)equals the marginal social benefit.
B)is less than the marginal social benefit.
C)includes the marginal external benefit.
D)exceeds the marginal social benefit.

Question

If a positive externality results from the consumption of higher education, then the marginal benefit students receive from education:
A)​equals the marginal social benefit.
B)​is less than the marginal social benefit.
C)​includes the marginal external benefit.
D)​exceeds the marginal social benefit.

Quizplus · Accepted Answer

The marginal benefit students receive from education is less than the marginal social benefit because it does not include the positive externalities (additional benefits to society) that result from higher education.

If a Positive Externality Results from the Consumption of Higher