Question

Is education a public good? Does education have external benefits? If so, what are some of those public benefits? In your opinion are the external benefits large or small? Why? What should government do to promote the efficient provision of products that have external benefits? If you think that government should put more resources into education, what might be some of the opportunity costs of that decision? How would an economist determine the right amount of government support for education?

Respond to the following prompts in a post with a minimum of 200 words

Answer 1

Is Education a public good ?

Education is not purely a public good. Public goods have a property of being non - rival and non excludable.

Does education have external benefits? If so, what are some of those public benefits ?

Yes, Education has external benefits, The external advantages of education incorporate education’s immediate advantages to the advancement of city foundations that contribute gradually finished extensive stretches of time to the control of Law, Majority rules system, human rights and political steadiness.

Externalities additionally incorporate direct advantages to life span, diminished neediness, bring down wrong doing rates, Bring down open welfare and jail costs, commitments to joy and social capital and abilities to utilise new research and development.

IN your opinion are the external benefits large or small? Why ?

External benefits are Large. Because, External benefits of education incorporate both private, public benefits.

What should government do to promote the efficient provision of products that have external benefits ?

There are two ways to deal with advancing positive externalities,

1) To expand the supply of( increasing supply), and

2) The demand for Products( increasing Demand).

If you think that government should put more resources into education, what might be some of the opportunity costs of that decision ?

Opportunity costs represent the potential benefits of an business or investor misses out on when choosing one alternative over another. Thus, if one decides to put more resources in to education it is giving up the amount of investment that could have spent on their public goods like Roads and  Health care . Thus, the cost of providing these goods is the opportunity cost of putting more resources in to education.

How would an economist determine the right amount of government support for education?

Economists are trained in such a way, they are to perform on the spot when the markets can’t work alone and government intervention is required. Economists advocate striking a harmony between free competition and control, it’s uncertain for an economist to assert that private markets can serve each and every need with no outgovernment intervention.