For the argument in favor of state subsidies draw by hand


The State of Wyoming spends about $300 million dollars per year on higher education, and also provides generous Hathaway Scholarships. Does higher education provide enough positive externalities for that state subsidy to make sense economically, or should the provision of higher education just be left to the market?

at least one page excluding tables, figures and references. Discuss both sides of the issue, and support your arguments with facts. You don't need to draw a conclusion. You do need to properly cite references for the facts that you cite.

For the argument in favor of state subsidies, draw (by hand is OK, but make sure it's neat) a supply and demand diagram that shows the positive externality, the effect of the subsidy, the market outcome, and the socially optimal outcome.

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Macroeconomics: For the argument in favor of state subsidies draw by hand
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