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University presidents around the country have convinced the Congress to support an educational program that will allow students to attend any college in the US
University presidents around the country have convinced the Congress to support an educational program that will allow students to attend any college in the US they want (and can get into even SAIS!) for only $15,000 in annual tuition and living expenses. This program would generate $45,000 in extra aftertax earnings. The rest of society i.e., taxpayers, pays costs of $25,000 in scholarship costs per student but receives only $12,000 in discounted added tax revenues. a. Would this program pass the HicksKaldor economic efficiency test? b. Is this the right test to use? c. Regardless of the answers to (a) and (b), is this a program that you, as a SAIS student, would support? Why yes or no
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