Question

select the correct answer.
what economic concept is applied in this statement?
by earning higher levels of education, students learn skills and are more likely to be employed. in their jobs, they use their skills to provide goods and services to others.
a. equilibrium
b. law of demand
c. law of supply
d. negative externality
e. positive externality

Explanation:

1. Analyze Option A: Equilibrium refers to a state of balance in markets (e.g., supply - demand balance), which is not related to the impact of education on others, so A is incorrect.
2. Analyze Option B: The law of demand relates to the inverse relationship between price and quantity demanded of a good/service, not relevant here, so B is incorrect.
3. Analyze Option C: The law of supply relates to the direct relationship between price and quantity supplied of a good/service, not relevant here, so C is incorrect.
4. Analyze Option D: Negative externality is a cost imposed on third - parties. Here, education has a positive impact, so D is incorrect.
5. Analyze Option E: Positive externality is a benefit that a third - party receives from an economic activity. When students get educated, they not only benefit themselves (by getting employed) but also provide goods/services to others (a benefit to society), so this is a positive externality.

Answer:

E. positive externality