The median earnings for a 25- to 34-year-old, full-time, year-round worker with only a high school education was $31,830 in 2016, while similar workers with a bachelor’s degree (but no further education) earned $49,990, and as a result, they pay more income tax.

a. Is there a private benefit to individuals who attend college and earn a bachelor’s degree? 

b. Is there an external benefit associated with an individual earning a bachelor’s degree? 

c. Do you think that the private market—meaning without government support for students or colleges—for college education would result in too many or too few people going to college relative to the socially optimal outcome? 

d. If you think that the private market would not result in the socially optimal outcome, what types of things could the government do in order to achieve a socially optimal outcome in the market for college education?