0506 4C Wing Yu
Description:
More and more students want to apply for the associate degree (副學士) programme and then
connect with the bachelor degree programme, therefore the director of the Education and Manpower
Bureau want to increase the supply of bachelor degree programme to connect with the associate degree
programme in the next six years. The Education and Manpower Bureau may put in at least 0.3 billion
in it and increase 1680 academic degree for the students.
bachelor degree programme that connect with the associate degree programme
Explanation:
The demand for the bachelor degree programme that connect with the associate degree
programme increases and the demand curve shifts to the right (D1->D2). The supply curve is vertical
because the supply of the bachelor degree programme is fixed and as the Education and Manpower
Bureau increases the supply of the bachelor degree programme, the supply curve of it shifts to the right
(S1->S2). The school fee will then increase to aviod excess demand (P1->P2) and the quantity
transacted increases (Q1->Q2). There is an increase in price and in quantity, so there is only gain in
total revenue and the total revence of government increases.
The bachelor degree programmes are economic goods because there is a cost of production and
they are insufficient to satisfy all our wants. More of them is also perferred to less.
In the circular flow model, the bachelor degree programmes are the service that provided for the
students who applies for the associate degree programme. The teachers who teaches the students that
are apply for the bachelor degree programme, is the factor service.
For the problems of resource allocation, the Education and Manpower Bureau make the decision
on the what to produce and whom to produce questions. It increases the supply of bachelor degree
programme and provide them to the students who applies the associate degree programme.
The university is an example of the tertiary production because it provides service for the students.
The teachers who teaches the students are the labours and human capitals because they put in both
mental and physical human effort that used in production, and their knowledge can be used in
production.