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What is an economic argument for public funding of education

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What is an economic argument for public funding of education? Does this mean that schools should be publicly establishment/managed? What benefits would result if the government simply provided parents/students money for education and allowed parents/students to use this money to buy their education at whatever school they wished?
Why does a government policy to reduce the supply of illegal drugs greatly increase the price of illegal drugs? Might this policy result in more crime? Might a government policy to reduce the demand for drugs have a different effect?
What negative externalities do highway tolls address?

 
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