economics of education lecture 2

Question 1

how can we represent a school as a production function?

Answer 1

you can represent school as a production fucntion of o=f(K,L) where O is output, K is capital input and L is labour input.

Question 2

what is the effect of peer groups on the performance of the students?

Answer 2

the performance of the students is affected by the ability of others in the group

Question 3

what is required if choice leads to efficiency?

Answer 3

supply flexibility
money follows students
independent management of schools

Question 4

what are vouchers?

Answer 4

they are grants given to the pupil/parent not the school and in principle, the government no longer dictates both the price and quantity. good schools will see an increase in demand with poor schools a fall

Question 5

what are the critisms of vouchers?

Answer 5

parents are not competent to assess the quality of education
choice is limited in rural areas
excess demand must be rationed- how and does the price rise
teachers unions oppose them
schools collude