Advanced Questions 13. The town of Greenville has three families, each with one child, and each of which earns $20,000 per year (pre-tax). Each family is taxed $4,000 per year to finance the public school system in the town, which any family can then freely attend. Education spending is $6,000 per student in the public schools. The three families differ in their preferences for education. Though families A and B both send their children to the public school, family B places a greater value on education than family A. Family C places the greatest relative value on education and sends their child to private school. c. Explain how you know that family C is made better off and family A is made worse off by the voucher policy. d. Show, using diagrams, that family B could be made better or worse off by the voucher policy.
Advanced Questions 13. The town of Greenville has three families, each with one child, and each of which earns $20,000 per year (pre-tax). Each family is taxed $4,000 per year to finance the public school system in the town, which any family can then freely attend. Education spending is $6,000 per student in the public schools. The three families differ in their preferences for education. Though families A and B both send their children to the public school, family B places a greater value on education than family A. Family C places the greatest relative value on education and sends their child to private school. c. Explain how you know that family C is made better off and family A is made worse off by the voucher policy. d. Show, using diagrams, that family B could be made better or worse off by the voucher policy.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter15: Income Inequality And Poverty
Section: Chapter Questions
Problem 15CQ
Related questions
Question
![Advanced Questions
13. The town of Greenville has three families, each with one child, and each
which
earns $20,000 per year (pre-tax). Each family is taxed $4,000 per year to finance the
public school system in the town, which any family can then freely attend. Education
spending is $6,000 per student in the public schools. The three families differ in their
preferences for education. Though families A and B both send their children to the public
school, family B places a greater value on education than family A. Family C places the
greatest relative value on education and sends their child to private school.
c. Explain how you know that family C is made better off and family A is made worse
off by the voucher policy.
d. Show, using diagrams, that family B could be made better or worse off by the
voucher policy.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c32a667-d44c-4dda-8295-c8466db327b8%2Faf7fd6f7-0227-4108-bca5-6b92220c4821%2Fz0dx4zl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Advanced Questions
13. The town of Greenville has three families, each with one child, and each
which
earns $20,000 per year (pre-tax). Each family is taxed $4,000 per year to finance the
public school system in the town, which any family can then freely attend. Education
spending is $6,000 per student in the public schools. The three families differ in their
preferences for education. Though families A and B both send their children to the public
school, family B places a greater value on education than family A. Family C places the
greatest relative value on education and sends their child to private school.
c. Explain how you know that family C is made better off and family A is made worse
off by the voucher policy.
d. Show, using diagrams, that family B could be made better or worse off by the
voucher policy.
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