Essay Question: Case Study---Medical School Admission (2 Marks) A Medical School Has Received 300 Applications From Students Who Want To Enrol. The School Has The Capacity To Accept Only 120 New Students. All The 300 Applicants Have At Least The Minimum Academic Requirements. All Have Sent Cheques For The $6,000.00 Tuition Fee. Since The Number Of

1. Essay Question: Case Study---Medical School Admission (2 marks) A medical school has received 300 applications from students who want to enrol. The school has the capacity to accept only 120 new students. All the 300 applicants have at least the minimum academic requirements. All have sent cheques for the $6,000.00 tuition fee. Since the number of applicants exceeded the number of slots, there is scarcity and a need to determine which applicants will be admitted and which will not. a) How is the decision made to determine who gets in? List possible methods for allocating the 120 slots among the 300 students. b) It is important to recognize that each of these allocation mechanisms, institutions, or governance alternatives will likely result in a different class composition, i.e., a different 120 students granted admission. Which allocation mechanism do you think is the best? Briefly justify your answer (maximum of 200 words). Note: There is no single correct answer to this question. You will get a full mark as long as you clearly state your opinion in your own word. Hint: Allocating school admission seats is different from allocating goods and services. The interesting issue is: which class is best from society's perspective? That is actually a deeper or broader question that asks how we should allocate the talents of the 300 students, between using their time as doctors or in a next best alternative. Would it not be great if the allocation mechanism resulted in their first best choice for their time also being the first best choice for society? Is it possible that each student's best choice might also be the best choice from society's perspective? Could private interest and social interest be the same?