Final answer:
The subsidization of post-secondary education in Canada indicates both the presence of positive externalities and an effort to align private and social benefits. Statement iii is incorrect because externalities clearly exist. Therefore, statements i and ii are correct, making the answer D) i and ii only.
Step-by-step explanation:
When evaluating whether post-secondary education in Canada is subsidized due to the existence of externalities or the equality of private and social benefits, it's important to address each statement individually:
- Statement i suggests that without regulation, the market would provide less than the efficient amount of education because unilateral market decisions do not account for the positive externalities of education.
- Statement ii implies that the subsidization aligns the marginal private benefit with the marginal social benefit, attempting to correct the market failure caused by externalities.
- Statement iii is incorrect as it implies there are no externalities from education, which contradicts the evidence that suggests there are significant positive externalities.
It is well-established that education provides not only private benefits but also wider social benefits. These social benefits, or positive externalities, include better health outcomes, lower crime rates, a cleaner environment, and a more stable government, among others. Thus, the correct assertions related to the subsidization of post-secondary education in Canada are i and ii, suggesting both the presence of positive externalities and the alignment of private and social benefits through subsidization. Consequently, the correct answer is D) i and ii only.