Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 4

Why might funds be available on less favorable terms for human capital investments than for physical capital investments In your judgment, does this difference justify public subsidy in the form, say, of federal guarantees of loans to college students What are some external benefits associated with education Do you feel that these benefits justify public subsidies to education Can you provide a rationale for the argument that public subsidies should diminish as students advance to higher and higher educational levels