Most university officials believe students should exercise regularly, and thus charge them a mandatory gym fee so that they can regularly use university gym facilities. Many students do not use the gym facilities and would prefer to use the money for textbooks or food. Which one of the following arguments against standard economic reasoning can be applied to this scenario?

Question

Quizplus · Accepted Answer

The argument against standard economic reasoning that can be applied in this scenario is cultural goods and paternalism. This argument suggests that some goods, such as access to gym facilities, may have cultural or social value beyond their market value, and thus it is justifiable to charge a mandatory fee even if not all students use it. Furthermore, university officials may believe that it is in the best interest of students to promote a healthy lifestyle through regular exercise, which is a form of paternalism. Therefore, this scenario can be justified based on cultural goods and paternalistic arguments rather than solely on economic efficiency.

Most University Officials Believe Students Should Exercise Regularly, and Thus