Homework answers / question archive / 1) I believe that education is a public good because it is stated in the law that all children have to go

1) I believe that education is a public good because it is stated in the law that all children have to go

Economics

Share With

1) I believe that education is a public good because it is stated in the law that all children have to go. Public schools are offered as alternatives to those who cannot afford to attend private schools. Furthermore, education does have external benefits. Though not always the case, people who have degrees have a higher likelihood of having a successful future. That is why many cultures, including my own, place a large emphasis on education at an early age. Education allows people to move up in the world and in status, if needed. For example, my parents as Vietnamese immigrants, were able to make lives for themselves after going to college and getting degrees that have allowed them to not only escape poverty, but further thrive in society today. There should be more education laws and programs to alleviate student debt because many yearn for an education that they cannot afford. Even if it means allocating the military budget (which in my opinion, is too much), an education will do people a world of good if given the access to it. Education is imperative because it allows for new ideas that feed back into our economy and continues to stimulate it. Without education, the world would be at a standstill and would not improve to benefit the population whatsoever. Economists should look at trends in regards to education and find correlations in which education is beneficial and necessary to society. That way, they can see the payoff and opportunity costs of education.

2. To define public good, a good must be both nonexcludable and nonrivalrous. Education does not fall into this category; thus, education is not considered as a public good. And because it is excludable since universities can force students to pay tuition before receiving an education.

The external benefits of education are large. The external benefits of education are high living standards, better employability skills, more innovation, a civilized and informed society.

The government should make education more affordable by providing education for free or at low cost or giving more scholarships and subsidies to promote the efficient provision of products that have external benefits.

The opportunity cost of spending more resources on education is other services that have been sacrificed. It may include reduced expenditure on defense, reduced expenditure on food security, reduced expenditure on health services, etc.

Economist determines the right amount of government support by comparing marginal cost and marginal benefit. The amount of government support is determined at a point where marginal cost is equal to marginal benefit.