Question

Education brings with it an externality. The government has traditionally taken steps to encourage educational attainment through various polices. How do current levels of education compare relative to the optimal level of education from society's perspective? Have enough measures been taken to correct for the presence of an externality?

Answer 1

Yes, education brings with it an externality where the targetted literacy or the standards of education can be helpful in raising the standards of the economy as the production levels can be increased with reduction in the wastage on the whole. However, the current level of education in the United States still lag behind certain issues like the fee where there are many nordic and European countries that offer for free and apart fromthat the measures taken by the government to attract both the Indian as well as the foreign students can count a lot in encouraging some world class education and achieve the presence of an externality on the whole.