Describe some of the external benefits associated with education. What can government do to encourage production of the efficient amount of education?
What will be an ideal response?
External benefits to education include the facts that college graduates:
• communicate more effectively with others,
• tend to be better citizens,
• have lower crime rates,
• are more tolerant of others' views.
To insure that the efficient amount of education is produced, the government could:
• provide education, as it does with public schools,
• subsidize education, as it does with state universities, or
• give consumers vouchers to reduce the cost of private schooling, as is happening in some states or with various college grant programs.
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By engaging in trade and acting in their own self interest, World War II POWs were following the economic principle of
A) division of labor. B) international trade. C) voluntary exchange. D) comparative advantage.
For the most part, differences in wealth do reflect current labor market discrimination
Indicate whether the statement is true or false