Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Supply of education increases, leading to a lower price for education
B
Demand for education decreases due to increased prices
C
Quality of education declines as more institutions enter the market
D
The government reduces funding for other public services
Understanding the Answer
Let's break down why this is correct
Answer
When a government provides subsidies for education, it makes education more affordable for students and their families. This means more people can afford to attend school or pursue higher education, which increases the overall demand for education services. As demand rises, schools and universities may expand their programs or hire more teachers to accommodate the growing number of students. For example, if a government offers financial support for college tuition, more students might enroll, leading to a larger workforce in the future. Ultimately, these subsidies help create a more educated population, which benefits society as a whole by promoting economic growth and innovation.
Detailed Explanation
When the government gives money for education, schools can offer more classes. Other options are incorrect because Some might think that more money means higher prices; It's a common idea that more schools mean worse quality.
Key Concepts
Subsidies
Positive Externalities
Market Efficiency
Topic
Subsidies for Positive Externalities
Difficulty
easy level question
Cognitive Level
understand
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