Question

What are the reasons for and against subsidizing all medical students seeking a medical education? How would you evaluate these reasons according to the criteria of economic efficiency and equity?

Answer 1

Federal government loans and subsidies includes education benefits, it was reduced now a days due to demand in price subsidies..Human capital for investment for higher education among uninsured population capital market imperfections imply that not feasible to face maximum potential education fees without a decline in demand for government schooling..Adding negligible government subsidies into private cost for total payment it will refure the rate of return..The gap between the private and social return to government schools due to subsidies..It increase the government costs.. economic efficiency and equity students parents should have secondary education to bear the cost of their education cost most likely to have subsidies, socioeconomic group and inequality of income increase the uses of fees..

State government completely against for subsidies in higher education..so strategic suggest it only able to pay unless the rise in school fees is discriminatory it induce substantial withdrawal from the government system..