ECON 15B Lecture 11: (5-17) Midterm Review

The marshall plan generated economic growth by: 

Why should taxpayers subsidize public colleges and universities? what external benefits are generated by higher education?

The private cost of producing a good will differ from the social cost:

A. when there is an externality, such as acid rain generated by the production of electricity.

B. when there is an externality, such as lower crime rates generated by the consumption of education.

C. when there are property rights, where individuals or businesses have exclusive use of their property.

D. when there is no externality, such as in the production of ice cream.

E. both a and b.