Question: 3. (8 points) Consider the graph below. Are individuals choosing higher or lower educa- tion than the socially optimal level? Make sure to include an

 3. (8 points) Consider the graph below. Are individuals choosing higher

3. (8 points) Consider the graph below. Are individuals choosing higher or lower educa- tion than the socially optimal level? Make sure to include an explanation of why. / Expected private returns Tertiary Returns and costs Secondary Private costs Primary Years of schooling completed (a) Private returns and costs Social costs Social returns Returns and costs Secondary Primary Tertiary Years of schooling completed (b) Social returns and costs

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