Question

If the government provides free schooling for all students, an economist would say education is a. a free good, having no cost. b. scarce even though its cost is paid by taxpayers rather than by students. c. an example of a good that is no longer scarce. d. all of the above.

Answer 1

Answer: B. scarce even though its cost is paid by taxpayers rather than by students.

Explanation: Government providing free education for students will have an economic cost on government which will be offset with taxpayers money. The cost will arise from teachers salaries, school facilities and educational materials, the students are getting it at no cost. The cost is paid from the taxpayers money and this free schooling provided by government is said to be scarce ( insufficient in demand).