Question 1
a) Discuss the arguments FOR government spending on higher education (ie why it is appropriate that taxpayer funds should be spent on higher education for individuals).
b) Discuss the arguments AGAINST government spending on higher education (ie why spending on higher education should be private spending)
Question 2
See the graph below that compares Gini coefficients for 30 countries of the OECD (Organisation for Economic co-operation and Development), plus the 30 country OECD average.
a) Explain how the level of income inequality in an economy is analysed (ie Lorenz curves and Gini coefficients).
b) How does the level of income inequality in Australia (AUT) compared to France (FRA), USA, Sweden (SWE), and Great Britain (GBR) (according to this data)?
c) According to Lecture 4, what types of economic policies are implemented by Governments to reduce inequality?
There are many ways in which the government strives to achieve equal distribution of resources. If not there would be income inequality in an economy. One of the ways is spending on higher education. According to private rate of return, median gross income by level of education reveal that graduates earn significantly higher than high school
