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Suppose That a Mayor of a Large City Believes Strongly

Question 188

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Suppose that a mayor of a large city believes strongly that education provides great benefits to the community and urges the state government to provide the district with more money. An economist would say that this reflects the Mayor's belief that:


A) ​since teachers are overpaid, the district needs more money to hire enough teachers for its classrooms.
B) ​there are positive external benefits associated with education.
C) ​there are nontrivial external costs associated with education.
D) ​public schools provide a higher quality education than private schools.

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