Suppose that the government made it legal to submit false tax returns on college aid applications. What do you predict would happen to the price of attending college?

Question

Quizplus · Accepted Answer

If it became legal to submit false tax returns, then wealthy students would have the option to underreport their income and assets in order to qualify for more financial aid, while poor students who cannot afford to manipulate their taxes would end up with less aid. This would shift the burden to the lower-income students, who would have to pay a larger amount to cover the loss of aid previously allocated to wealthier students.

Suppose That the Government Made It Legal to Submit False