Problem 6

Introduction

Education, often known as human capital, is no exception in case of investment to get a future benefit. A student and their parents devote a large amount of time and money to their child's growth over several years. Higher levels of academic achievement, the theory goes, would eventually boost a person's educational efficiency, and means of earning.

If the government spends public money to finance the education system, a community must anticipate a return on investment. Admittedly, education investment has favorable externalities. Though not always simple to quantify, the positive externalities of education often include greater population health, fewer crime rates, a healthier planet, and a much more steady, democratically elected government.