Vaccination Case Study

1. Assuming that state funding for the universities is held constant, describe the conditions that will prevail if tuition is held below equilibrium price. Provide one (1) example to support your response.
If tuition is held below equilibrium price, more student will want to attend state universities, which can affect the quality of education because there will be increasing class sizes or cut backs on the number of classes. This may result in students not being admitted to their desired classes. Universities may implement changes in admission requirements to reduce enrollment of lesser qualified applicants. Universities may use adjunct instructors instead of full-time faculty; that can also affect the academic performance of students.
2. Will
education really be "equally accessible" under these conditions? Provide one (1) example to support your response.
Education will not be equally accessible under these conditions. This condition might increase inequality if the supply of university places was limited. The education system may not treat students fairly as universities will be forced to change criteria for enrollment. Universities will still want to maintain high academic standard so more intelligent students may receive preferential treatment. Maintaining high academic standard is important both as a way to challenge students and to improve the reputation of the institution. Qualified and motivated students from minority groups may still be excluded from certain classes.
Part B
1. Describe one (1) reason why the private market for flu vaccinations would produce an inefficient outcome.
The goal of vaccination is to achieve at least 95% coverage.
In countries with low economies especially those developing countries vaccinations through the private market will provide inefficient outcomes because though the vaccines might be available, only those with the buying power will actually get vaccinated. When only a small fraction of the population is vaccinated, the spread of any flu virus can become widespread. Lower income earners will not consider flu vaccines a priority and thus opt not to get vaccinated. This in turn will create an increase in inventory in the private market and also a loss of capital because most of these vaccines will expire within a year of manufacturing and will eventually be disposed of. As a result of the loss the private entities will resort to procuring a limited number of vaccines or none at all.
2. Describe one (1) way that government involvement could achieve an efficient quantity of vaccinations.
Government’s involvement can achieve an efficient quantity of vaccinations because it is possible for governments within the region especially in the developing countries to pull all their resources together and procure their vaccines in bulk. This will in turn be cheaper for the individual states and ensure a constant annual supply of vaccines which can be offered free to the citizens especially those at risk or sold at a price much cheaper than the private sector. This will ensure that the 95% goal of vaccination is achieved. Government can also enact laws making it mandatory for at risk clients to get vaccinated.
3. Provide one (1) original example for each of the
following:
A. a private good - Often, private goods have finite availability, making it excludable in nature. For example, only a certain number of a certain pair of designer shoes is produced, so not everyone can have those shoes. Not only is a single pair seen as a private good, but the entire product line can be included.
B. a public good - Public television received over the air and standard AM or FM local radio also qualify, as any number of people can watch of listen to the broadcast without affecting other people's ability to do so.