Question

because education has benefits that can be characterized as public goods, private markets would be unlikely to provide the allocatively efficient amount of education if public schools did not exist. (T/F. Explain why)

Answer 1

True

Public goods are those which are nonrival and nonexcludable in nature

Nonrival means having no competition with others

Nonexcludability means open for everyone without any partiality

Since education is considered to be public good because it is right of everyone

But if private markets capture the education and public schools do not exist then there might be not proper allocative efficiency in the education as private players focus on rival and excludable nature,which is not a feature of the public good

For example-- a private school may prefer a student who is able pay a higher fee than a poor family background student