Discuss the argument that education should be subsidized because it creates a positive externality. If the best solution to solving the positive externality problem of education is to provide a subsidy, explain why educational systems in all countries are government entities.

 

230: Amazon.com was the first mover in online book sales. It patented the one-click purchasing system. Barnes & Noble was a later entrant with bn.com. Is this a battle with a ‘‘winner takes all’’ outcome? Why or why not? Which of the three types of government policies— antitrust, social regulation, or economic regulation— is the basis for each of the following? Which market failure would provide a theoretical basis for the government policy? a. Beautician education standards b. Certified Public Accounting requirements c. Liquor licensing d. The Clean Air Act e. The Nutrition and Labeling Act

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