Q1: The government provision of free public education of a fixed quality in a particular area

Group of answer choices

A: results in crowd-out only among those living in that area who send their children to private (tuition-charging) schools despite the free public school option.

B: could lead some families in the area to reduce the quality of schooling their children obtain relative to if there were no free public school option.

C: will necessarily be more expensive than the government provision of educational vouchers in an amount equal to the average per-student spending in the public school.

D: cannot be justified because there are no potential sources of market failures in the private market for education.

Q2:

As in the previous question, the Anteater Familv can spend its monev on education [e] or ether goods [g]. The familv's utilityr over e and g is given by 0.5 .5 Ute, g) = E 5" The Anteaters have in co me of $90,000 to spend on e and g each vear. Assume there is no public education svstem; the onlv option is to send their children to private school. However, now the government subsidizes private education for families like the Anteaters, such that the price per unit [e.g., per hour} of private education is $10 {instead of $20}. Assume the price per unit of othe:r goods is still $20. The number of units of private education the Anteaters opti mallv consume 1with the subsidyr is units {enter onlv a number in the blank, and round to the nearest integer it n ecessarv}. As in the previous two questions, the Anteater Family can spend its money on education le] or other goods [g]. The family's utility over e and g is given by all! .s [ll-(5: 9'} 2 39a The Anteaters have income of $90,000 to spend on e and g each year. Now, however, there is the option of sending children to public school. If the Anteaters send their children to public school, they get 3000 units of e for a price of $0. If the Anteaters send their children to private school, they can choose any number of units of e at a price of $10 per unit {as in Question 12). The price of all other goods remains $20 per unit. Calculate the utility level associated with sending their children to public school and spending all their money on other goods. Calculate the utility level associated with sending their children to private school and spending their remaining money on other goods {i.e., the utility level associated with the choice derived in Question 12}. Given your answers, the Anteaters will send their children to l 59'3\"] V school. [ Select ] In this case, free public education [55'9\"] ' public Anteater children receive. private In this case, free public education [ Select ] the quantity of education the Anteater children receive. [ Select ] increases decreases does not change