Question

assume education generates a positive externality. Governor Cuomo has proposed millions of dollars in cuts to CUNY schools. Who benefits from this policy? Please select all that apply:

1) students

2) College of Staten Island

3) Third parties such as employers in NY

4) Taxpayers

Answer 1

Firstly students got direct benifit from this policy as they may observe a rate cut in school fees.

Secondly I would like to talk about tax payers. They firstly directly benefited as there children may be studying in school. And on the other hand, an educated society will be built up by this policy which will provide better standard of living to taxpayers.

Lastly Third parties like employers will be benefitted in a way that there will be more educated applicant due to reduction in cost of education, and it will creat a huge competition among the applicants. And the employers could choose the best applicant among them who will provide them greater productivity.

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