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Recently, the U.S. Supreme Court ruled that cities could have voucher programs that give money directly to parents, and the parents can then choose between competing schools: public and private. The idea for promoting such a ruling was to create competition among schools. As with businesses, schools were expected to improve their products (how effectively they teach) to win students from competitors. Supposedly, that would mean an improvement in all schools, private and public, and would benefit many students.

1.Do you believe that such economic principles apply in both private and public organizations? Please defend your answer.

2.Are there other public functions that might benefit from more competition, including competition from private firms?

Microeconomics, Economics

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