Problem 1) Should a country invest in education? Why or why not? How will investment in education affect a county's production possibilities frontier in the future?
If a country should invest in education which level should get the majority of the funds? Should High Schools and Elementary Schools get the funding or should higher education? Which will have the greatest effect on the PPF? Why?
Problem 2) Should the government fund education or should it be funded privately? Why? Will the opportunity costs of each type of funding be the same or will they differ? Explain. Make sure you use economic reasoning to support your arguments.
Problem 3) Discuss the opportunity cost of educational funding. If education funding should be increased, how should the government pay for it? Should it increase taxes? If so, on who? Should it cut other programs? Which level of the government should be responsible for the additional funding, Federal, State or Local? Why?