APPLYING ECONOMIC PRINCIPLES TO EDUCATION - Essay Example

2-3: Applying Economic Principles to Education 2-3: Applying Economic Principles to Education Do you believe that such economic principles apply in both private and public organizations? Be prepared to defend your answer. Yes, I believe that such economic principles apply to both private and public organizations. This principle amounts to greater competition in the market place. To effectively compete with each other, organizations will be forced to improve the quality of the products or services that they offer in order to give better value to their customers.

This will also be advantageous to the consumers because some companies tend to lower their prices to increase their market share. In a free market economy, people “vote” through their purchases of goods and services. Those getting the most “votes” are the ones that offer the best value for the people’s money. With support coming from the consumers, these firms have the dollar power to further improve on the quality of their products and services. Those firms who fail to attract enough customers/buyers are those who do not provide a good value.

If they do not shape up, these organizations will eventually go by the wayside. 2. Are there other public functions that might benefit from more competition, including competition from private firms? Yes, there are other public functions that might benefit from more competition, including competition from private firms. These organizations would include those in the area of health care (hospitals, day-care facilities & retirement homes), low-cost housing, transportation, telecommunications, and infrastructure.

These industries will definitely benefit from competition because it will lead to better service, efficiency, expansion of coverage and reduction of delivery cost to the consuming public.