Question

Discuss the efficiency and equity of implications of each of the following policies. How would you go about balancing the concerns of equity and efficacy in these areas?(a) The government pays the full tuition for every college student to study whatever subject he or she wishes.(b) When people lose their jobs, the government provides unemployment benefits until they find new ones.

Answer 1

Answer:

a. equitable but may not be sufficient

b. equitable but may not be sufficient

Explanation:

Given the information from the question. We have to briefly discuss the efficiency and equity of implications of the following  

a. Government paying full intuition of students this instance is equitable .However this may not be sufficient due to the fact that government has limited resources like funds. Therefore there’s always a trade of in terms of hope the government spends these resources. In other words due to the opportunity cost ,these action by government may lower a number of students attending and finishing studies .As result ,these will consequently increase a number of people who pursue career without education at a tertiary level .

b. Government providing employment benefit will result into more people not seeking employment due to the benefit. Therefore, this policy is equitable but not sufficient. However the deficiencies maybe eliminated by limiting the time for such benefit of unemployment.