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Contrary to predictions, for-profit colleges and universities are more expensive than public institutions. T or F?
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- How does education, as an area of government spending, both positively and negatively impact a business?If you have two major firms that are government-owned but do not use taxes to operate, is privatization the best way to increase social welfare?According to Public Choice Theory, how could government regulation be doomed to failure?
- Explain why economists might say that the market for higher education demonstrates externalities and market failure.Politicians and citizens may often choose policies that reduce economic efficiency because they are perceived as “fairer.” true or falseIs it inevitable that government must become involved in supporting investments in new technology? Why or why not?
- Q 4: Answer the questions below using the following Table (and Figures if needed): c) As Vice-Chancellor, should you consolidate or expand the programs. Provide your advice using the information in the table d) What is the effect of the introduction of a license fee of 9 million dollars by the government for undergraduate programs being offered by universities on the zero-profit curve for these programs? Use relevant plots in your answerExplain why economists might say that the market for higher education demonstrates externalities and market fairlure.Semi strong market efficiency only considers public information, not the historical and private information. True or False?
- Is “fairness” the economic basis for government laws and regulations designed to remedy market failures? If so, why; if not, what is the economic basis?Is education a public good? Does education have external benefits? If so, what are some of those public benefits? In your opinion are the external benefits large or small? Why? What should government do to promote the efficient provision of products that have external benefits? If you think that government should put more resources into education, what might be some of the opportunity costs of that decision? How would an economist determine the right amount of government support for education?As the Great Depression began in 1929, and millions of Americans found themselves in a terrible economic position, President Herbert Hoover was reluctant to involve the government in directly helping people. This decision helped lead to his loss in the presidential election of 1932. Put yourself in Hoover’s shoes—what reasons would he have for being opposed to large-scale government involvement in the economic lives of Americans? What reasons could be given for the government getting involved?
