6. Education is an example of an activity that generates a positive externality: acquiring more education benefits
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6. Education is an example of an activity that generates a positive externality: acquiring more education benefits the individual student and having a more highly educated workforce is good for the economy as a whole. The accompanying table illustrates the marginal benefit to Sian per year of education and the marginal cost per year of education. Each year of education has a marginal external benefit to society equal to $8,000. Assume that the marginal social cost is the same as the marginal cost paid by an individual student.
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Related Book For
Essentials Of Economics
ISBN: 9781429218290
2nd Edition
Authors: Paul Krugman, Robin Wells, Kathryn Graddy
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