Asked by Julia Barrera on Mar 10, 2024
Verified
The market will produce ________ level of education when we ________ its external benefits.
A) an efficient; do not consider
B) more than an efficient; do not consider
C) less than an efficient; do not consider
D) more than an efficient; do consider
External Benefits
The positive effects of a production or consumption activity on third parties who are not directly involved in the transaction.
Efficient Level
The optimal point of production or operation where resources are utilized in the most effective manner, without waste, to achieve a desired outcome or maximized benefit.
- Assess the impact of external benefits on the efficient provision of public goods and services such as education.
Verified Answer
GO
Gabrielle OsbornMar 10, 2024
Final Answer :
C
Explanation :
When the external benefits of education (such as a more informed citizenry, lower crime rates, etc.) are not considered, the market will produce less than the efficient level of education because it does not account for these positive externalities in its production decisions.
Learning Objectives
- Assess the impact of external benefits on the efficient provision of public goods and services such as education.