Question

since education yields private returns, which are fully captured by the person who makes the investment, the market will provide the optimal level of education and the government should not intervene

Answer 1

This statements is false, Education does not give only private returns, but it gives social return more than that. Educated person is the capital of the society, he contributes to the development of society and country by getting employment through his ability. By opening new industries and businesses, they provide employment to many people of society and their standard of living improves. Education enhances a person's social standing, improves his social skills and status. An educated person knows the importance of education hence he motivates his next generation and other people of the society for education. In this way, it brings changes in the society, therefore, the government should not only leave the responsibility of education to the private sector, but should come forward and try to remove illiteracy and improve the quality of education in the country.