Macroeconomics 8th Edition by David Colander

Exercise 1

Friedrich Hayek, the man quoted at the start of the chapter, is an Austrian economist who won Nobel Prize in economics. He argued that government intervention is difficult to contain. Suppose central planners have decided to financially support all children with food vouchers, free day care, and public school.
a.What problems might this create?
b.How might this lead to further interference by central planners into family choices? (Ausman)