Education as a public good
Is education a public good? Does education have external benefits? If so, what are some of those public benefits? In your opinion are the external benefits large or small? Why? What should government do to promote the efficient provision of products that have external benefits? If you think that government should put more resources into education, what might be some of the opportunity costs of that decision? How would an economist determine the right amount of government support for education?
Sample Answer
Education is considered to be a public good because it has two key characteristics: non-excludability and non-rivalry. Non-excludability means that it is difficult or impossible to prevent people from consuming the benefits of education, even if they do not pay for it. Non-rivalry means that one person’s consumption of education does not diminish the amount of education available to others.
Education also has external benefits, which are benefits that accrue to people other than the person who consumes the good. Some of the external benefits of education include:
- Increased productivity: Educated workers are more productive than uneducated workers, which can lead to higher economic growth.
- Reduced crime: Education can help to reduce crime by teaching people how to resolve conflict peacefully and by giving them better job opportunities.
- Improved health: Education can help to improve health by teaching people about healthy lifestyles and by giving them access to preventive care.
- Stronger democracy: Education can help to strengthen democracy by teaching people about their rights and responsibilities as citizens.