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Lesson 03 Key Economic Concepts

Pre-Reading Commentary

The assigned readings provide you with frameworks and concepts to help you better understand higher education revenue and cost models and how to apply economic principles to institutional research (e.g., tuition revenue, state appropriates, financial aid, gifts, marginal costs, fixed costs, variable costs, etc.).

Think about these questions as you complete the readings: 

  • How can higher education institutions restructure in response to financial challenges?
  • How can institutions reallocate resources to meet these challenges?   
  • To what extent should institutions be more responsive to market forces and respond more like the business sector?

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