What are the relevant markets in the model

Reference no: EM13222149

an economist might say that collage and universatys "produce" education, using facilty members and students as inputs. According to this line of reasoning, education is then "consumed" by house holds. Construct a circular-flow diagram like the one found in the chapter to represent the sector of the economy devoted to collage education: collages and universities represent firms, and house holds both consume education and provide facilty and students to universities. What are the relevant markets in this model? What is being bought and sold in each direction? what would happen in the model if the government decided to subsidize 50% of all collage students tuition?

Reference no: EM13222149

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