Question

Write and answer a question about economics that one might have before entering an American Economics class.

Answer 1

The question that i would have and would like to question in teh economics class is:

Should university education be free?

Education has positive effects for society as a whole. There will be under-provision if university education is left to market forces, and the economy will suffer from a lack of qualified graduates. In turn, higher education in a free market will become the domain of affluent families who can afford to send their children to university. There is a good argument therefore for the government to offer free higher education at the point of use.

Others claim, however, that the positive externalities of higher education are restricted, and a university degree's highest beneficiaries are the students who can order a higher paying work. If the potential benefits of several degrees are minimal, government spending can be misallocated to providing comparatively costly education at universities. Rather of funding 3-4 year university degrees, governments can get a better return from spending money on primary education and vocational training – training that is more important to the economy's needs.