Assess the equity and efficiency of the following policy:

The government pays the full tuition for every college student to study whatever subject he or she wishes.

(a) The policy is efficient but may not be equitable.

(b) The policy is neither equitable nor efficient.

(c) The policy is both equitable and efficient.

(d) The policy is equitable but may not be efficient.

(d) The policy is equitable but may not be efficient.

The policy would be equitable since the government would pay the full tuition for every student. This would result in every student having access to education, regardless of income level.

This policy may not be efficient since the student could choose whatever subject they wish. Students may opt for subjects that may not produce the largest benefit for both the student and/or the society. If a student were to choose a subject that would result in a career which has an average income much lower than another subject they could have chosen, then this would not be efficient for the student. This would result in less spending power. Also, lower income would result in the government receiving less taxes. Lower spending would also decrease the gross domestic product (GDP) of the society. Lastly, allowing any subject to be chosen may not properly incentivize certain fields which could greatly benefit the society, such as the medical field. If the society had a shortage of doctors for instance, incentivizing one career choice over another may be advantageous.