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From course:

Economics A Level (DONEEEEEEE)

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Question:

Explain how Education has a Positive Consumption Externality? [And why it is Ignored by the Free Market & Some Parents]

Author: eric_galvao



Answer:

-Free Markets will Ignore by the Supplier as they care for Profit Maximisation, and Parents may only see the Benefit to only Themselves or Their Children. [And therefore there would be a Potential Welfare Gain lost to Society] -Really, more Educated workforce leads to more Productive and helps out anti-social behaviour, like Crime.


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