Explain why it might be socially and economically optimal for a government to have a public policy that subsidizes students who attend and graduate college

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter13: Positive Externalities And Public Goods
Section: Chapter Questions
Problem 16RQ: Explain why the federal government funds national defense.
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. Explain why it might be socially and economically optimal for a government to have a public policy that subsidizes students who attend and graduate college

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Subsidy for education would benefit society socially as well as economically.

There would positive externalities associated with graduation,because those graduated students might provide benefits to society and help in the economic growth of country by contributing towards GDP.

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