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When the government provides K-12 education because educated children provide an external benefit to society, it is addressing which type of mark failure? O Imperfect information O Market power O Negative externality Positive externality O Public good

When the government provides K-12 education because educated children provide an external benefit to society, it is addressing which type of mark failure? O Imperfect information O Market power O Negative externality Positive externality O Public good

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Question:** When the government provides K-12 education because educated children provide an external benefit to society, it is addressing which type of market failure? **Options:** - Imperfect information - Market power - Negative externality - Positive externality - Public good **Explanation:** The government’s provision of K-12 education addresses the market failure known as a "positive externality." When individuals receive education, they not only benefit personally but also provide benefits to society as a whole, such as a more informed electorate and a more productive workforce. This is why it is often provided or subsidized by the government—because the free market would not supply enough education on its own to achieve the optimal level of societal benefit. **No graphs or diagrams are present in the image.**
Transcribed Image Text:**Question:** When the government provides K-12 education because educated children provide an external benefit to society, it is addressing which type of market failure? **Options:** - Imperfect information - Market power - Negative externality - Positive externality - Public good **Explanation:** The government’s provision of K-12 education addresses the market failure known as a "positive externality." When individuals receive education, they not only benefit personally but also provide benefits to society as a whole, such as a more informed electorate and a more productive workforce. This is why it is often provided or subsidized by the government—because the free market would not supply enough education on its own to achieve the optimal level of societal benefit. **No graphs or diagrams are present in the image.**
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