Positive Externalities In Education

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Externalities can be defined as whenever the benefit or cost of consuming a good affects people that are not actually consuming it. They come in two forms: positive and negative externalities. Positive externality can be defined as this occurs when the consumption or production of a good causes a benefit to a third party an example can be education when people go in college because they want to get an education, probably so they can get good jobs, live happy lives, etc. But them getting an education does not just benefit them, it benefits society as well. Some may go on to invent handy products, or come up with important ideas, which everyone else will gain from. So even people that are not paying for your education will get some positive benefit from it, The Negative externality example can be pollution: Pollution is the classic negative externality. If I own a coal mining company, my excavation of coal has costs that I have to pay. But it also results in costs for everyone else, despite the fact that they aren’t producing coal. The rest of society has to deal with the added pollution resulting from my production. In this case we will looking at the positive externality which is created by education and see if university education can be subsidized by taxpayers because of this externality.
Another positive externality frequently associated with education is economic
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The notion that education generates sufficient external benefits, either through higher levels of economic growth spillovers is examined and found lacking. Even under conditions of market failure, government failure is omnipresent and sufficiently. Through education provides positive externality and that university education needs to be subsided the government might not have enough money to pay for education which might also reduce the funds paid by the
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