Author Question: Most economists believe that there are positive externalities in education. One can conclude that a ... (Read 60 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
Most economists believe that there are positive externalities in education. One can conclude that a free market would fail to give the socially optimal outcome because the equilibrium:
 a. price and quantity would be too high.
  b. price would be too low and quantity would be too high.
  c. price and quantity would be too low.
  d. price would be too high and quantity would be too low.
  e. price and quantity would be just right.

Question 2

When there is a positive externality associated with the watering of one's lawn, the free market results in:
 a. not enough lawn watering.
  b. too much lawn watering.
  c. the socially optimal level of lawn watering.
  d. people watering each other's lawns.
  e. government subsidies for lawn watering.



AISCAMPING

  • Sr. Member
  • ****
  • Posts: 347
Answer to Question 1

d

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

For a complete list of videos, visit our video library