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Part (a) The cost of domestic tertiary education is subsidised in Australia. With the aid of a diagram, explain the economic rationale for this subsidisation. Part (b) Despite knowing they will incur the monetary costs of studying, some students fail to commit themselves sufficiently to study to ensure they pass. How would behavioural economists explain this behaviour?

Part (a) The cost of domestic tertiary education is subsidised in Australia. With the aid of a diagram, explain the economic rationale for this subsidisation. Part (b) Despite knowing they will incur the monetary costs of studying, some students fail to commit themselves sufficiently to study to ensure they pass. How would behavioural economists explain this behaviour?

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