Question

College education provides higher income for the individual but also a more productive and more educated person who will contribute to society in many ways. Higher education is an example of:a) a positive externality.b) a negative externality.c) a non-excludable service.d) adverse selection.

Answer 1

Answer:

a) a positive externality

Explanation:

Higher education is a clear example of a positive externality. This is because producing highly educated individuals provides a large number of benefits to the overall society that was not part of creating this college graduate, therefore being a third-party but still benefiting from this scenario. The benefits that a highly trained and educated individual can bring to a society is huge and affects different areas such as architecture, economics, society wellness, etc.