Practise identifying direct government provision, explaining why essential, merit or public goods are provided directly, and evaluating its benefits and limits.
A government decides to remove fees for higher education provided by the public sector and the private sector.
What is the consequence of this policy?
Higher education is less likely to be provided by the private sector.
Resources in higher education will be allocated through the price mechanism.
The demand for higher education will be perfectly elastic when the price is zero.
The opportunity cost of higher education to students will be zero.
A