TANSTAAFL stands for There is no such thing as a free lunch. How would this concept...

TANSTAAFL stands for There is no such thing as a free lunch. How would this concept apply to the policy of giving everyone “free” college tuition? Use the concepts of efficiency and equity to support your explanation.

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Expert Solution

TANSTAAFL analogy stands for one person get any good or service for free there may be some other person who will wind up paying for it.

Ex: Tax subsidies, Government give tax subsidies to few people where there will be tax assumption for them but the money to cover subsidies will be imposed on some other goods or services.

There is no such thing of free lunch is applicable in a society where all the resources are used effectively and completely where there will be equity among people and efficient usage of these resources.

Everyone giving free college tution fee is like some people who cant afford to study further will be able to study further and all the people are equal where the people will efficiently use this policy for a better purpose to have better future of themeselves and the development of society.

In this policy of free tution fee the actual cost of this fee is either paid by the state or any other individual. The Government is the who is mainly pays this fees but the government get these funds for paying the fees is from the taxes that it collects from all the people. SO the people who study with this policy will also pay taxes by their family.

Thus the analogy of one person get any good or service for free there may be some other person who will wind up paying for it is used.

Rahul Sunny answered 1 year ago

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