Part A:
Politicians are often heard saying that tuition at state universities should be kept low "to make education equally accessible to all residents of the state, regardless of income."
1. Assuming that state funding for the universities is held constant, describe the conditions that will prevail if tuition is held below equilibrium price. Provide one (1) example to support your response.
Politicians are often heard saying that tuition at state universities should be kept low "to make education equally accessible to all residents of the state, regardless of income."
1. Assuming that state funding for the universities is held constant, describe the conditions that will prevail if tuition is held below equilibrium price. Provide one (1) example to support your response.
C13.V.4.1 Microeconomics
Assignment 04,
Principles and Applications of Microeconomics
If the tuition is held below equilibrium price or low tuition fee there will be more students at state universities. A university education is very important that should be affordable for everyone regardless of the financial situation of their family. Nowadays, most of the people want to be educated for the prosperous future which is possible through high education. If the tuition fee of a university is high than the average income of the local residents, it would be very difficult to get university degree. Everybody wants to fulfill their basic needs first. But if the tuition fee of a university is low automatically there will be a flow of students. It is also very important to universities to select students who are capable for the syllabus of the university education. Only students with good marks or passed students in their previous education can get admission in universities because they have the capability to understand the course of higher degree. Scholarship for the most intelligent students is also one of the best way to expand the education in a state. It is same as the "when price decreases demand increases" in a market equilibrium.
I am sure that there will be more students in a university when tuition is held below equilibrium price but I am not sure about that quality of a education for all students. It will be better to raise admission standards by providing higher education who have a best high school grade rather than who have low high school grade. Intelligent students have good memory power, good knowledge and ability to do something. The reputation of the universities is depend on the education system and on students. Talented students can make famous the name of their school, university, state and a country worldwide. Larger size of a class at the state universities can create a problem for students that they will not be able to attend to some of the classes they want to take. It also can affect on the standard of education of the universities. It is same as the quality of the product is high when the price of a product is also high and the quality of a product is low when the price of the product is less. Price has a direct effect on quality.
Influenza is a very serious disease which can lead to hospitalization or sometimes even death. Every people have a chance to get sick from this flu. It can spread through sneeze, cough or talk. This flu can spread to others up to about 6 feet away. To prevent this disease each and every people should be vaccinated. This vaccine helps to reduce to spread in the community. It is necessary to vaccinate against this disease mostly for children, old people and pregnant women. Private sector where flu vaccines was provided took advantage of this disease by charging money from their patient. It is a very dangerous disease that’s why everyone wants to be vaccinated and it was the time to earn more money for private sector. In a market private sector for flu vaccines made a bad impact by charging money because at the same time government sector was providing this vaccines free, without any charge. Private sector should have authority to sell it from government sector where they must pay for it. Every people cannot pay for the vaccines, it means a person who do not have money has a less chance to survive and a person who have money. There is a slogan in a business "a person who pays for the good can benefit from the good". But it does not work everywhere. That’s why a private sector failed to produce an efficient outcome. It was for the life of the citizens where government do not want to negotiate with anyone.
Influenza disease in the United States begins from October to May which is also called 'flu season'. Influenza viruses are circulating at higher level in United States during this time. The best way to reduce this flu viruses by providing annual seasonal flu vaccine (by flu shot or nasal spray). In a government sector, flu vaccines is available free under the National Immunisation Program for those people who has a high risk from suffering of this flu. The government has recommended this influenza vaccines to everyone from six months of age. Influenza (flu) is a highly spread disease which is responsible for sudden increase of respiratory illness, mainly in winter season all over the world. The government program against flu disease helped a lot of people to live a normal life. Free vaccines for every citizens and to return back their happy life was the aim of the government when this virus was seen and spread all over in a short time. It is a public good. Nowadays, flu vaccines are offered in many locations such as clinics, health departments, doctor's office, college health centers and pharmacies. Influenza vaccination helps to reduce risk of high outcomes of flu, like hospitalizations and deaths.
In an economic, a private good is defined as a rival and excludable. A good which is consumed by a single person or household is private good. It is related to a single person. No one is allowed to use the other's good by his/her permission. A good example of private good is my father's car. Mercedes-Benz has manufactured a fixed number of six series sedans; there are not enough manufactured to own one for everyone. My father's Mercedes-Benz is also excludable; he does not allowed anyone else to drive his car. In the other hand, public good is non rival and non excludable. It is available for everyone to consume. It is not necessary to pay to consume good, everyone can use it regardless of who pays and who does not. The non rival means that one person's consumption does not affect another person's consumption of a good. Similarly, non excludable means that one person cannot prevent another person from consuming a good. In other words, even those people who do not pay can benefit from the good. For example, if I get benefit from a landslide dam doesn't decreases your benefit from the dam. National defense, space exploration, the preservation of endangered species, law enforcement and fireworks shows are the good example of public good.
References
O'Sullivan, Steven M. Sheffrin & Stephen J. Perez (2014). Microeconomics: Principles, Applications and Tools (8th Ed.). Boston: Pearson.
Robert S. Pindyck & Daniel L. Rubinfeld (2012). Microeconomics (8th Ed.). New Jersey: Pearson.
N. Gregory Mankiw (2014). Principles of Microeconomics (7th Ed.). Ohio: South-Western College Publication.
Campbell McConnell, Stanley Brue & Sean Flynn (2014). Microeconomics: Principles, Problems & Policies (20th Ed.). New York: McGraw-Hill Education.
