Econ 405 Assignment 2
Assignment 2: Externalities of Education
Professor George A. Uhimchuk
ECO405 – Economic Problems & Issues
Summer Term 2012
In economics, an externality is a cost or benefit that is not transmitted through prices and is incurred by a party who was not involved either as a buyer or seller of the good or service causing the cost or benefit. The positive externalities of education include, but are not limited to, a well-educated workforce that is more competent and productive at their jobs, a higher paid workforce, as well as a socio-cultural diversity in the workforce. A well educated work force comes from a quality education, whether public or private. A quality education will produce a better work force, making workers more competent and productive at their jobs. With a well-educated workforce, prospective employees are better equipped to handle most jobs that come available, be more in demand and also be more likely to continue their education after high school. With the world becoming more technologically advanced, having a well-educated workforce is more beneficial as these employees are able to understand the advances and work through the advances. Higher income for the workforce means less people on government assistance and more people paying taxes, which also lead to keeping more jobs open for more people to work. Higher income also stimulates the economy, which produces more jobs because people will spend more money at businesses, causing employers to open up new jobs to keep the customers happy, while also helping more people be employed. In public, and even some privately funded education, there are people from all races, backgrounds, and cultures. Growing up with this in schools help children, teenagers and adults learn to co-exist among each other throughout the time in school. This carries over into the workforce, helping people to be more adaptable to different situations with people from different...
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