Explore BrainMass

Explanation of education as a positive externality

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Education is often used as an example of a positive externality. Are the external benefits greater for elementary, secondary, or college education? Explain.

© BrainMass Inc. brainmass.com October 25, 2018, 9:35 am ad1c9bdddf

Solution Preview

An externality is a benefit or a cost to society as a result of the production of a particular good or service. A positive externality benefits society but that benefit is not transferred directly to the provider of the good or service. Schools provide educational services in return for money, either ...

Solution Summary

This solution explains why education is often cited as an example of a positive externality, and gives detailed reasoning for which of elementary, secondary and college education provides the greatest benefit to society.

See Also This Related BrainMass Solution

Positive vs Normative Statement

Explain the difference between a positive and normative statement. Give an example of each type of statement.

How can an economy achieve points that are outside the production possibilities curve?

Review the Spillover Principle. Give an example of a good with a positive externality and a good with a negative externality (not mentioned in the online text). What are the best ways to allocate goods with externalities?

Do some research on your own on public goods. What are the two main characteristics of this type of good? What is the biggest "problem" with allocating public goods? Do you think the government should have a role in allocating public goods, or should goods be privatized? Be sure to support your answer with references.

View Full Posting Details