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University fees should not be abolished - Essay Example

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Before getting into the issue itself it is necessary to provide some discussion on the reasons why in some cases universities took on the initiative to abolish fees.The actions of the university are more or less the same in almost all developed countries. …
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Download file to see previous pages Before getting into the issue itself it is necessary to provide some discussion on the reasons why in some cases universities took on the initiative to abolish fees.The actions of the university are more or less the same in almost all developed countriesIn recent times some ideas have become redundant and politically incorrect. Most incoming students in the universities stand in long queue to get admission into the universities for the courses that have been closed for hours before they arrived. In such cases it is discouraging to ask students to pay for wasting time. The universities of the developed nations could not compete with the American economic system as they failed to bridge the gap in actual learning created by the public universities. Arguments There has been a long standing concern that pupils from lower socio economic backgrounds are forced to stay out from attaining higher education especially from attending universities. The social mobility is constraint due to high inter generational correlation in attainment of education. Even if the concerns regarding the equity are left out then also efficiency is lost for the society as a whole. Two sets of actions can be undertaken to analyze the reason for the situation to arise. The first action can be directed towards intensive studies while the second action can be directed towards the policies necessary to address the issue. ...
If en economic policy aims to eliminate a monopoly while the market becomes competitive as well as efficient the monopolist will be in a worse off situation. A competitive economy will result in Pareto optimal allocation when there is presence of full information in the economy and there is absence of externalities. Increasing returns to scale in technology is absent. The government can intervene into the market to facilitate the flow of information, manage the existing externalities, provide public goods and manage the income distribution within the society. The university or the college staffs can shift the resources effectively for more efficient allocation so as to ensure maximum outputs given inputs. As there inefficiencies in technical and allocation exist a significant portion of available resources go wasted. The state and university college is confronted with the Production Possibility Frontier. A tool can be designed for the purpose which will embody the resource constraints and simplified assumptions on the college and university’s production possibilities. The assumptions as are follows: Two goods are produced while resources are fully utilized and budget is endowed as resources. The feasible and the non feasible mixes of output are depicted in the PPF. A Pareto efficient situation is possible only in cases where there are feasible mixes of output. Technical efficiency reflects the ability of a firm to avoid waste and attain maximum output level from a given set of inputs. The firm can attain such type of situation by mainly two ways. The firm produce as much output as possible by using the technology and inputs or by using just optimal amount ...Download file to see next pagesRead More
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