Harris worthman, chapter 8, question 2

When I was reading chapter 8 of Naked Economics I stumbled upon a passage about college universities and how many of which have tons of teachers that are not, in fact, licensed. This stuck out to me and it was at that moment that I recollected a tale told to me by my sister (a current student at North Eastern University) about how her college went from being unknown to one of the top 50 business universities in the country in less than 20 years. To my surprise it was one big economic illusion that boosted NU's ranks. In 1996 NU was struggling to keep itself alive and the new president of NU saw an opportunity in the massive parking lot surrounding NU. What he did is he created more buildings which, in return, made the classes smaller as well as added more classes. Having a larger campus and more classes to choose from makes a school more desirable, however, it also has it's drawbacks. The main drawback is that it is harder for students to get into the classes they want and, in my sister's case, this makes everything way more chaotic. Another big drawback is that the tuition rose to a fairly large amount immediately after the construction and many students dropped out or transferred within the next year. Not only that but since North Eastern, at the time, had been ranked 146 in the country in business, students looking into the college were quickly turned off by the high tuition and NU suffered for the next year. That is until NU's rank started to rise due to the sudden changes. In a matter of years NU became notorious in Boston and many students flocked to the "up and coming" business university. North Eastern University; the school that added a couple bricks and became one of the top 50 business universities in the country.