In many countries, education is either wholly provided by the government or is heavily subsidized. How would an economist explain this?
A. Since education has a spillover? benefit, private markets will under provide for it.
B. Education is a pure public good and those who do not pay cannot be excluded from it.
C. Individuals will not purchase education because they do not benefit from it.
D. Since education has a spillover? cost, private markets will over provide for it.
E. The only way to provide education is through a? government-sponsored system.
Answer: A. Since education has a spillover? benefit, private markets will under provide for it.
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