In it, information is carried by prices. Prices are determined by the economic demand for goods and their relative supply. Profits and losses show whether resources are being used efficiently. This communication system leads to the satisfaction of economic demand in the most efficient way possible, meaning that the fewest resources will be consumed. Public Schools Now consider the particular case of public schools and whether we can maximize the efficient use of taxpayer dollars.
Public schools are fundamentally different from businesses.
It doesn't exist because it isn't allowed to exist. Instead, public schools are financed by taxation. Money is simply taken from people without regard to economic demand or opportunity cost. There is, however, a non-economic communication system between the education consumer and the provider. Unfortunately it's not a very good system.