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:

A positive externality occurs when a third - party benefits from an economic activity without directly participating in it. In this case, students getting higher education and then using their skills to provide goods and services to others (benefiting society) is a positive externality. Equilibrium is about balance in supply - demand, law of demand is about price - quantity demanded relationship, law of supply is about price - quantity supplied relationship, and negative externality is a cost to third - parties, so these don't fit.

Answer:

E. positive externality