Question

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:

• Equilibrium: Refers to a state where supply and demand balance. Not relevant here.
• Law of demand: States that as price increases, quantity demanded decreases. Not applicable.
• Law of supply: As price increases, quantity supplied increases. Not the case.
• Negative externality: A cost imposed on a third - party. Opposite of the situation.
• Positive externality: A benefit to a third - party. Here, higher education leads to skills that benefit others (goods/services), which is a positive externality.

Answer:

E. positive externality