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Your essay question should state which of the options you support and you should explain why. You probably will want to refer to the justifications for government interference in a market economy.

1. Almost everyone agrees that all children should be enrolled in school at least up through the primary level. Most people believe that primary school should be provided free of charge to all children by the government. But free primary schooling is not the same as schooling provided in public schools. Some children could go to privately-run schools with tuition money paid for by the government. Consider the following five options. Five options choose one to answer

a. Schooling is compulsory up through age 11 (or completion of grades 1-6) and is provided free to all students who enroll in public schools. Parents may send their children to private schools, but in that case the parents must pay the full costs of the schooling.

b. Schooling is compulsory up through age 11 (or completion of grades 1-6). Parents are given a voucher worth the average cost of primary schooling in the particular country; the voucher may be used at any approved private school or at any public school. Private schools are free to select their students, but they may not charge more than the voucher is worth if they accept vouchers at all. Some private schools may choose not to accept vouchers and they may charge whatever tuition they wish.

c. This option is the same as b, except that private schools which accept vouchers are permitted to charge whatever tuition they want. In this case parents who want to send their child to an expensive private school will have to pay from their own pockets the difference between the tuition and the voucher. Parents are able to send their children to public schools at no additional expense, and there will presumably also be private schools that charge no more than the voucher.

d. Schooling is compulsory up through age 11 (or completion of grades 1-6) but it is not free. Private schools may charge whatever they wish, and public schools must charge enough tuition to cover their costs. The government does not use tax revenues to support primary schooling.

e. Schooling is not compulsory and the government provides no funds for schooling. This is the laissez-faire option.