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University Price Caps

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Gregory Hinks

on 9 March 2010

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Transcript of University Price Caps

Why the Price Mechanism is the best way to allocate University Tuition Greg Let's have a look at a diagram... Not enough supply Students get v disappointed! Students value their education less More unemployment Loss of human capital Problems Why does the government impose a ceiling? Encourage people to apply Enough of that already! This needs spaces as well Help the poor Could do this better with bursaries The Solution Benefits More supply Market forces allowed to operate Although there is a cost to this, the government will more than cover it Country is more attractive to investors/foreign students
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