In many cities, basic education, including primary and secondary education, is highly subsidized by the local government.  Explain why basic education coulddemonstrate a case of externality. Using this to explain why basic education is typically subsidized by local governments. Suggest ONE alternative government policy in achieving the same policy objective. Briefly discuss its pros and cons.

Economics (MindTap Course List)
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Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information
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In many cities, basic education, including primary and secondary education, is
highly subsidized by the local government.
 Explain why basic education coulddemonstrate a case of externality. Using this to explain why basic education is
typically subsidized by local governments. Suggest ONE alternative
government policy in achieving the same policy objective. Briefly discuss its
pros and cons.

 
 
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