Question

In the educational voucher case, parents who sent their child to public schools which were paid by taxes, now with vouchers end up spending

a. Less money on education that they did without vouchers.
b. The same amount of money but they get more education.
c. One can not tell which if the above is true but the parents do end up on a higher indifference curve.
d. More money on education that they did without vouchers.

Answer 1

The correct answer is option d. "More money on education that they did without vouchers".

Step-by-step explanation:

In the education voucher case, the government reduces funding from public schools and are given to private schools in the form of scholarships to students that are not able to pay the private schools. Therefore, parents who sent their child to the public schools end paying more money on education that they did without vouchers as the funding for the public schools is reduced to pay for the vouchers.