External Benefits of Education

Steps:

• Define external benefit as a positive externality where society gains beyond the individual's private benefits from education.
• Evaluate options for societal-wide impacts, not just private or internal gains to graduates or institutions.
• Identify productivity spillovers from more educated workers boosting overall economy.
• Select the option reflecting government revenue from enhanced economic output.

Why B is correct:

• External benefits include positive externalities like higher workforce productivity, which increases national output and thus tax revenue, per economic externality definitions.

Why the others are wrong:

• A: This is a private benefit to universities, not an external societal gain.
• C: This measures employment composition but not an external benefit to the economy.
• D: This is a private wage gain for graduates, not an external effect.

Final answer: B