You are an advisor to the Prime Minister of your country. Currently, post-secondary students in your country pay the full cost of their education, without the help of any government subsidies. The Prime Minister is strongly considering a new policy that fully subsidizes the cost of a post-secondary education.

a) The Prime Minister asks you to explain why the current system, without any subsidies, should remain in place. Based on your understanding of the course material, describe why any subsidies for post-secondary education would be bad policy. (3 marks)

b) After hearing your argument against tuition subsidies, the Prime Minister asks you to explain why it might be valuable to subsidize 100% of post-secondary education costs. Based on your understanding of the course material, describe why fully-subsidized post-secondary education would be good policy. (3 marks)