5) * The economics of education: Most places, education is either partly or fully subsidised by the government... da. Why would the government subsidise education? Will this not lead to losses in efficiency and welfare? In Australia, the government subsidises higher education but the size of the subsidy depends on the qualification obtained. A medical degree is much more heavily subsidised by the government compared to an accounting degree. What might have been the government's economic rationale for this? What economic argument could you put forward to support, and challenge, the relatively recent move to reduce the subsidy for arts degrees? Relatedly, in the absence of government intervention, would the production of scientific discovery be subject to market failure? In other words: what type of 'good' is scientific discovery? What consequences does this have for the role of government intervention in ensuring the provision of scientific discovery