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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) ex to support your response.
2. Will education really be "equally accessible" under these conditions? Provide one (1) ex to support your response.

Part B

Using the Internet, research the influenza vaccine, or "flu shot." Use the following to guide your research:
a. Think about the flu shot in the context of a public good.
b. What are the economic benefits of the flu shot?
c. In what ways has the government become involved in the distribution of flu shots? For what reasons?

1. Describe one (1) reason why the private market for flu vaccinations would produce an inefficient outcome.

2. Describe one (1) way that government involvement could achieve an efficient quantity of vaccinations.

3. Provide one (1) original ex for each of the following:
a. a private good
b. a public good.

Microeconomics, Economics

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