Which of the following is not a common rationale for government involvement in education?
a. Public education produces a positive inframarginal externality.
b. Public provisions of education makes students into better citizens.
c. Public financing of education is necessary on equity grounds.
d. all of the above
Question 2
Assuming that we can properly measure ability to pay, how do we use the principle of vertical equity to determine how much someone with greater ability to pay should pay in taxes?
a. By integrating it with the principle of horizontal equity.
b. Through reference to the benefit principle.
c. By looking at elasticities of demand for various income quintiles for the good in question.
d. We cannot use the principle of vertical equity to answer this question.
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