Question

Brisbane Grammar School only offers a certain number of positions each year. The school also charges school fees. Brisbane State High also only offers a certain number of positions each year. It charges no school fees but students are only accepted into the school if they can pass an admission test focussing on their academic ability. Which of the following statements is true? Education at Brisbane State High is non-excludable. O Education at Brisbane Grammar School is non-excludable. Education at both schools is a private good. Education at both schools is non-rivalrous. OEducation at Brisbane State High is a public good.

Answer 1

First we will consider Brisbane Grammar school

It has certain limited positions. So there would be competition for those limited positions. Hence education in this school is rivalry in nature.

Also we are given that the school charges certain fees for its education which means that those who are unable otopay the fees are excluded from the education. So the education in Brisbane Grammar school is also excludable.

A good that is both excludable and rival is a private good.

So education at Brisbane Grammar school is private good.

Now we see the case of Brisbane State High which also has limited seats which implies that there would be rivalry for those seats.

We are given that the school is not charging fees rather is conducting a test to determine the academic test to judge the skills of the candidate. This means it is screening the candidates based on certain academic skills and those who don't posses it are excluded. So the education is also excludable.

Hence the education at Brisbane State high is also both rival and excludable. Hence it is a private good.

One school excludes on the basis of fees and other on the basis of academic ability.

So the answer is C) Education at both schools is private.

( You can comment for doubts)