The Student Room Group

Edexcel Opportunity Cost Question

Hey!

So I've been going through some past papers, and have come across a question that asked for 2 external benefits of increasing education. For an answer I came up with:

1) more educated people are more employable -> less likely to commit crime -> better for the society;
2) better education (arguably) increases the cultural output of the society, so you get more artists, musicians, writers, etc. that are likely to produce works of art that will benefit the society

Now my question is this: are these acceptable examples of external benefits? In the mark scheme they brought more tangible examples of external benefits like increased revenues for companies and so on, so I'm a bit hesitant now about my understanding of external benefits and what are the best examples of those to use.

Thank you for the help!
Reply 1
better education leads to more skills and experience.
also better skilled are into more paid jobs.. more tax paid.. more govt revenue.. etc
Reply 2
Original post by HexBugMaster
Hey!

So I've been going through some past papers, and have come across a question that asked for 2 external benefits of increasing education. For an answer I came up with:

1) more educated people are more employable -> less likely to commit crime -> better for the society;
2) better education (arguably) increases the cultural output of the society, so you get more artists, musicians, writers, etc. that are likely to produce works of art that will benefit the society

Now my question is this: are these acceptable examples of external benefits? In the mark scheme they brought more tangible examples of external benefits like increased revenues for companies and so on, so I'm a bit hesitant now about my understanding of external benefits and what are the best examples of those to use.

Thank you for the help!


Well, you get points from me for abstract thinking. I highly doubt I'd ever come up with 'less likely to commit crime' by myself.

The main point of education and training is to have an educated labour force. This is a prime opportunity to use your technical jargon - talk about productivity, increasing factor mobility (easier to gain/switch jobs), developing the knowledge economy, etc. These all usually end up meaning higher employment and therefore higher incomes.

You clearly know what external benefits are and those examples can be made, but you may feel safer with more conventional examples. :smile:

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