ECON 151 Lecture Notes - Lecture 39: Indifference Curve, Externality, Budget Constraint
Document Summary
Give vouchers to poor families that cover tuition-fee; Can use to go to public or private school. Prevents people from being attached to district. Catchment area = you have to go to school in area where you live. Remove catchment = go wherever so no competition. Leave more decision making to schools: curriculum, hiring teachers, set tuition fees . E* is the minimum level of education necessary to reach social optimum; Minimum level of edu that is needed for ppl to be aware, vote, be innovative. Most states in us = have to go to school till 16. Most parents are fine: they invest more than the optimum. Parents/students decide if they want to invest money in more edu. Some poor parents end up investing less than necessary. Indifference curves (for three diff levels of ppl) and budget constraints ! Maximization technique = constraints tangent to indifference curve.