The external benefits of college education.

Question

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Answer 1

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 13, Problem 1QP

To determine

The external benefits of college education.

Expert Solution & Answer

Explanation of Solution

The external benefit, which is also known as the positive externality, is enjoyed by a third party through an economic transaction. Education is one of the best examples of merit goods that generate an external benefit. The important external benefits of college education are given as follows:

a) The creation of better-informed electorate: Quality education creates good citizens with better awareness about the society.
b) The effects on reducing the number of crimes: Education helps to minimize the level of criminality. A person who spends his time for education reduces the time availability to engage in other activities.
c) Increase in economic growth through higher production: Human capital is one of the important factors required for economic growth. Education improves the quality of human capital, which leads to a higher economic growth.
d) Increase in tax revenue: The educated people or degree holders tend to earn more than who have not attended college. It would increase the tax revenue of government.

Economics Concept Introduction

External Benefit: The benefit attained by a person from an economic transaction in which he is not directly involved in it (positive externality).

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Answer 2

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 13, Problem 1QP

To determine

The external benefits of college education.

Expert Solution & Answer

Explanation of Solution

The external benefit, which is also known as the positive externality, is enjoyed by a third party through an economic transaction. Education is one of the best examples of merit goods that generate an external benefit. The important external benefits of college education are given as follows:

a) The creation of better-informed electorate: Quality education creates good citizens with better awareness about the society.
b) The effects on reducing the number of crimes: Education helps to minimize the level of criminality. A person who spends his time for education reduces the time availability to engage in other activities.
c) Increase in economic growth through higher production: Human capital is one of the important factors required for economic growth. Education improves the quality of human capital, which leads to a higher economic growth.
d) Increase in tax revenue: The educated people or degree holders tend to earn more than who have not attended college. It would increase the tax revenue of government.

Economics Concept Introduction

External Benefit: The benefit attained by a person from an economic transaction in which he is not directly involved in it (positive externality).

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Answer 3

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 13, Problem 1QP

To determine

The external benefits of college education.

Expert Solution & Answer

Explanation of Solution

The external benefit, which is also known as the positive externality, is enjoyed by a third party through an economic transaction. Education is one of the best examples of merit goods that generate an external benefit. The important external benefits of college education are given as follows:

a) The creation of better-informed electorate: Quality education creates good citizens with better awareness about the society.
b) The effects on reducing the number of crimes: Education helps to minimize the level of criminality. A person who spends his time for education reduces the time availability to engage in other activities.
c) Increase in economic growth through higher production: Human capital is one of the important factors required for economic growth. Education improves the quality of human capital, which leads to a higher economic growth.
d) Increase in tax revenue: The educated people or degree holders tend to earn more than who have not attended college. It would increase the tax revenue of government.

Economics Concept Introduction

External Benefit: The benefit attained by a person from an economic transaction in which he is not directly involved in it (positive externality).

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Answer 4

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 13, Problem 1QP

To determine

The external benefits of college education.

Expert Solution & Answer

Explanation of Solution

The external benefit, which is also known as the positive externality, is enjoyed by a third party through an economic transaction. Education is one of the best examples of merit goods that generate an external benefit. The important external benefits of college education are given as follows:

a) The creation of better-informed electorate: Quality education creates good citizens with better awareness about the society.
b) The effects on reducing the number of crimes: Education helps to minimize the level of criminality. A person who spends his time for education reduces the time availability to engage in other activities.
c) Increase in economic growth through higher production: Human capital is one of the important factors required for economic growth. Education improves the quality of human capital, which leads to a higher economic growth.
d) Increase in tax revenue: The educated people or degree holders tend to earn more than who have not attended college. It would increase the tax revenue of government.

Economics Concept Introduction

External Benefit: The benefit attained by a person from an economic transaction in which he is not directly involved in it (positive externality).

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1QP

To determine

The external benefits of college education.

Expert Solution & Answer

Explanation of Solution

The external benefit, which is also known as the positive externality, is enjoyed by a third party through an economic transaction. Education is one of the best examples of merit goods that generate an external benefit. The important external benefits of college education are given as follows:

a) The creation of better-informed electorate: Quality education creates good citizens with better awareness about the society.
b) The effects on reducing the number of crimes: Education helps to minimize the level of criminality. A person who spends his time for education reduces the time availability to engage in other activities.
c) Increase in economic growth through higher production: Human capital is one of the important factors required for economic growth. Education improves the quality of human capital, which leads to a higher economic growth.
d) Increase in tax revenue: The educated people or degree holders tend to earn more than who have not attended college. It would increase the tax revenue of government.

Economics Concept Introduction

External Benefit: The benefit attained by a person from an economic transaction in which he is not directly involved in it (positive externality).

Answer 6

Chapter 13, Problem 1QP

To determine

The external benefits of college education.

Expert Solution & Answer

Explanation of Solution

The external benefit, which is also known as the positive externality, is enjoyed by a third party through an economic transaction. Education is one of the best examples of merit goods that generate an external benefit. The important external benefits of college education are given as follows:

a) The creation of better-informed electorate: Quality education creates good citizens with better awareness about the society.
b) The effects on reducing the number of crimes: Education helps to minimize the level of criminality. A person who spends his time for education reduces the time availability to engage in other activities.
c) Increase in economic growth through higher production: Human capital is one of the important factors required for economic growth. Education improves the quality of human capital, which leads to a higher economic growth.
d) Increase in tax revenue: The educated people or degree holders tend to earn more than who have not attended college. It would increase the tax revenue of government.

Economics Concept Introduction

External Benefit: The benefit attained by a person from an economic transaction in which he is not directly involved in it (positive externality).

Answer 7

Chapter 13, Problem 1QP

To determine

The external benefits of college education.

Answer 8

Expert Solution & Answer

Explanation of Solution

The external benefit, which is also known as the positive externality, is enjoyed by a third party through an economic transaction. Education is one of the best examples of merit goods that generate an external benefit. The important external benefits of college education are given as follows:

a) The creation of better-informed electorate: Quality education creates good citizens with better awareness about the society.
b) The effects on reducing the number of crimes: Education helps to minimize the level of criminality. A person who spends his time for education reduces the time availability to engage in other activities.
c) Increase in economic growth through higher production: Human capital is one of the important factors required for economic growth. Education improves the quality of human capital, which leads to a higher economic growth.
d) Increase in tax revenue: The educated people or degree holders tend to earn more than who have not attended college. It would increase the tax revenue of government.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

External Benefit: The benefit attained by a person from an economic transaction in which he is not directly involved in it (positive externality).

Answer 12

Ch. 13 - Prob. 1QP Ch. 13 - Prob. 2QP Ch. 13 - Prob. 3QP Ch. 13 - Prob. 4QP Ch. 13 - Prob. 5QP Ch. 13 - Prob. 6QP Ch. 13 - Prob. 7QP Ch. 13 - Prob. 8QP Ch. 13 - Prob. 9QP Ch. 13 - Prob. 10QP

The external benefits of college education.

The external benefits of college education.

Explanation of Solution

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