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. 5. [5 pts] [Many states have language in their constitutions...
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5. [5 pts] [Many states have language in their constitutions that requires the state to provide for an "adequate"
level of K-12 education spending. What is the economic rationale for such a requirement? 6. [5 pts] Provide an economic argument for why the government (federal, state) subsidizes higher education (hint:
think about the individual and society at large). 7. [10 pts./ 395] Explain the Tiebout mechanism and how, in theory, it solves the three main problems underlying
the efficient provision of public goods. Comment on the realism on the assumptions underlying these results. In
recent years we have seen greater centralization of public education. What would the Tiebout model predict about efficiency and satisfaction with public goods provision? How might school choice mechanism such as charter
schools and vouchers help.
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