Question 1

The arguments of voucher supporters are based on a __________ model of the education market.

Accepted Answer

A)  monopolistically competitive 
B)  perfectly competitive 
C)  natural monopoly 
D)  oligopoly 
A)  monopolistically competitive 
B)  perfectly competitive 
C)  natural monopoly 
D)  oligopoly B

Question 2

If increased spending leads to higher quality in education,government provision of a fixed amount of education will cause:

Accepted Answer

A)  a reduction in quality in all cases. 
B)  an increase in quality in all cases. 
C)  no change in quality in any case. 
D)  an indeterminate change in quality. 
A)  a reduction in quality in all cases. 
B)  an increase in quality in all cases. 
C)  no change in quality in any case. 
D)  an indeterminate change in quality. D

Question 3

One unintended consequence of giving public schools incentives for their students to do well on standardized tests is that it may lead to "teaching to the test" at the expense of teaching subjects that are not tested.If the standardized exams given by the state test reading comprehension and mathematics,would you expect these teaching distortions to be the same at the elementary and high school level? Explain.

Accepted Answer

Since more subjects are taught to high school students than to elementary students,one might expect that accountability programs will lead to more distortions at the high school level than at the elementary level.For example,if elementary education is focused primarily on reading comprehension and mathematics even without the test,then teaching to the test will not prevent students from learning other material.In contrast,to the extent that the focus of high school education is much broader,teaching to the test could narrow the scope of teaching considerably more.

Question 4

The argument that a voucher system will ________ the efficiency of schools is ___________ if there is a lot of Tiebout sorting on the basis of education.

Accepted Answer

A)  increase; not affected 
B)  increase; strengthened 
C)  increase; weakened 
D)  decrease; not affected 
A)  increase; not affected 
B)  increase; strengthened 
C)  increase; weakened 
D)  decrease; not affected

Question 5

Employers often list a 4-year college degree as a requirement for those applying for certain jobs.Is this practice consistent with the screening explanation for education,the human capital story,both,or neither? Explain.

Accepted Answer

This is consistent with both screening a

Question 6

When a talented student from a poor family is unable to receive a loan because she has no collateral,this _________ can be addressed by __________.

Accepted Answer

A)  government failure; the privatization of education 
B)  government failure; the abolition of the federal Department of Education 
C)  credit market failure; the privatization of education 
D)  credit market failure; government intervention 
A)  government failure; the privatization of education 
B)  government failure; the abolition of the federal Department of Education 
C)  credit market failure; the privatization of education 
D)  credit market failure; government intervention

Question 7

In the United States,in 2015,the average student with a disability costs about:

Accepted Answer

A)  $6,000 a year to educate,more than twice the cost of educating a student without a disability. 
B)  $6,000 a year to educate,about half the cost of educating a student without a disability. 
C)  $12,700 a year to educate,more than twice the cost of educating a student without a disability. 
D)  $12,700 a year to educate,about half the cost of educating a student without a disability. 
A)  $6,000 a year to educate,more than twice the cost of educating a student without a disability. 
B)  $6,000 a year to educate,about half the cost of educating a student without a disability. 
C)  $12,700 a year to educate,more than twice the cost of educating a student without a disability. 
D)  $12,700 a year to educate,about half the cost of educating a student without a disability.

Question 8

A pure educational voucher system will necessarily lead to which of the following,assuming that higher levels of spending lead to higher levels of educational quality?

Accepted Answer

A)  Each family with school-aged children receives a fixed amount that can be spent at any public or private school. 
B)  Each family with school-aged children would reduce private spending on education. 
C)  There is crowding-out of private spending on education. 
D)  Only low-income families receive assistance with the cost of private education. 
A)  Each family with school-aged children receives a fixed amount that can be spent at any public or private school. 
B)  Each family with school-aged children would reduce private spending on education. 
C)  There is crowding-out of private spending on education. 
D)  Only low-income families receive assistance with the cost of private education.

Question 9

Someone argues that vouchers will lead students of different races to sort into "white" and "black" schools.This type of criticism expresses a concern about:

Accepted Answer

A)  excessive school specialization. 
B)  segregation. 
C)  provision of education as a natural monopoly. 
D)  vouchers as an inefficient and inequitable use of public resources. 
A)  excessive school specialization. 
B)  segregation. 
C)  provision of education as a natural monopoly. 
D)  vouchers as an inefficient and inequitable use of public resources.

Question 10

If education serves to separate high-ability workers from low-ability workers,it _____ play a valuable social role,and the educational institutions that do this best should be _______.

Accepted Answer

A)  does not; taxed 
B)  does not; subsidized 
C)  does; taxed 
D)  does; subsidized 
A)  does not; taxed 
B)  does not; subsidized 
C)  does; taxed 
D)  does; subsidized

Question 11

With respect to empirical evidence related to education,which is NOT true?

Accepted Answer

A)  Higher levels of education are associated with a reduced likelihood of participation in the political process. 
B)  Higher levels of education are associated with a lower likelihood of criminal activity. 
C)  Higher levels of education are associated with improved health. 
D)  Higher levels of education among workers are associated with higher rates of productivity of their coworkers. 
A)  Higher levels of education are associated with a reduced likelihood of participation in the political process. 
B)  Higher levels of education are associated with a lower likelihood of criminal activity. 
C)  Higher levels of education are associated with improved health. 
D)  Higher levels of education among workers are associated with higher rates of productivity of their coworkers.

Question 12

Suppose a state institutes a voucher program.Schools that have too many applicants use a lottery to randomly determine who can attend.The best approach to determining the effect of a voucher on student achievement is to compare the achievement of students ___________ to the achievement(s)of __________.

Accepted Answer

A)  who won the lottery; the average student in the public school 
B)  in private schools; students in public schools. 
C)  who won the lottery; students who lost the lottery 
D)  in schools with increased enrollment; students in schools with decreased enrollment 
A)  who won the lottery; the average student in the public school 
B)  in private schools; students in public schools. 
C)  who won the lottery; students who lost the lottery 
D)  in schools with increased enrollment; students in schools with decreased enrollment

Question 13

Loans made to students by the federal Department of Education are referred to as:

Accepted Answer

A)  direct student loans. 
B)  deferred student loans. 
C)  subsidized student loans. 
D)  guaranteed student loans. 
A)  direct student loans. 
B)  deferred student loans. 
C)  subsidized student loans. 
D)  guaranteed student loans.

Question 14

Education is a good example of a:

Accepted Answer

A)  pure public good. 
B)  pure private good. 
C)  good that creates external benefits. 
D)  good that creates external costs. 
A)  pure public good. 
B)  pure private good. 
C)  good that creates external benefits. 
D)  good that creates external costs.

Question 15

Recent work by Mars and Turner (2015)suggests that Pell Grants:

Accepted Answer

A)  largely crowd out borrowing for college,creating very little net change in education levels. 
B)  largely crowd out borrowing for college,creating a significant net change in education. 
C)  have no significant crowding out effect on borrowing for college,so the net change in education levels is negligible. 
D)  have no significant crowding out effect on borrowing for college,so the net change in education levels is substantial. 
A)  largely crowd out borrowing for college,creating very little net change in education levels. 
B)  largely crowd out borrowing for college,creating a significant net change in education. 
C)  have no significant crowding out effect on borrowing for college,so the net change in education levels is negligible. 
D)  have no significant crowding out effect on borrowing for college,so the net change in education levels is substantial.

Question 16

If the government were to subsidize the purchase of education without intervening in any other way,it would be intervening through the _________ mechanism.If the government were to mandate that everyone attend school through age 16 without intervening in any other way,it would be intervening through the __________ mechanism.

Accepted Answer

A)  public provision; private provision 
B)  price mechanism; quantity mechanism 
C)  quantity mechanism; price mechanism 
D)  price mechanism; price mechanism 
A)  public provision; private provision 
B)  price mechanism; quantity mechanism 
C)  quantity mechanism; price mechanism 
D)  price mechanism; price mechanism

Question 17

Someone argues that under any voucher system,schools will try to avoid taking the students who are the most difficult to teach.This criticism is an example of the concern about:

Accepted Answer

A)  segregation. 
B)  provision of education as a natural monopoly. 
C)  the high costs of special education. 
D)  vouchers as an inefficient and inequitable use of public resources. 
A)  segregation. 
B)  provision of education as a natural monopoly. 
C)  the high costs of special education. 
D)  vouchers as an inefficient and inequitable use of public resources.

Question 18

The positive correlation between education and earnings is consistent with education as:

Accepted Answer

A)  an escape for those who don't want to work. 
B)  a screening device that may not affect skills. 
C)  a waste of taxpayer money. 
D)  a way of preventing income inequality. 
A)  an escape for those who don't want to work. 
B)  a screening device that may not affect skills. 
C)  a waste of taxpayer money. 
D)  a way of preventing income inequality.

Question 19

Which is TRUE about the international comparison of per pupil spending and educational attainment?

Accepted Answer

A)  State and local governments spend only 5% of their budgets on education. 
B)  The United States spends much more per student and achieves outcomes that are noticeably higher than those of other nations. 
C)  U.S.eighth graders are less proficient in math and science than students in much less wealthy countries. 
D)  In the United States,the federal government spends 30% of its budget on education. 
A)  State and local governments spend only 5% of their budgets on education. 
B)  The United States spends much more per student and achieves outcomes that are noticeably higher than those of other nations. 
C)  U.S.eighth graders are less proficient in math and science than students in much less wealthy countries. 
D)  In the United States,the federal government spends 30% of its budget on education.

Question 20

The Common Core is:

Accepted Answer

A)  a long-accepted group of learning objectives that govern K-12 curriculum design. 
B)  a controversial set of national standards outlining what students ought to know. 
C)  an attempt to give local school districts more control over educational goals. 
D)  considered too easy to be helpful in improving educational outcomes. 
A)  a long-accepted group of learning objectives that govern K-12 curriculum design. 
B)  a controversial set of national standards outlining what students ought to know. 
C)  an attempt to give local school districts more control over educational goals. 
D)  considered too easy to be helpful in improving educational outcomes.

Exam 11: Education

The arguments of voucher supporters are based on a __________ model of the education market.

If increased spending leads to higher quality in education,government provision of a fixed amount of education will cause:

The argument that a voucher system will ________ the efficiency of schools is ___________ if there is a lot of Tiebout sorting on the basis of education.

Employers often list a 4-year college degree as a requirement for those applying for certain jobs.Is this practice consistent with the screening explanation for education,the human capital story,both,or neither? Explain.

When a talented student from a poor family is unable to receive a loan because she has no collateral,this _________ can be addressed by __________.

In the United States,in 2015,the average student with a disability costs about:

A pure educational voucher system will necessarily lead to which of the following,assuming that higher levels of spending lead to higher levels of educational quality?

Someone argues that vouchers will lead students of different races to sort into "white" and "black" schools.This type of criticism expresses a concern about:

If education serves to separate high-ability workers from low-ability workers,it _____ play a valuable social role,and the educational institutions that do this best should be _______.

With respect to empirical evidence related to education,which is NOT true?

Loans made to students by the federal Department of Education are referred to as:

Education is a good example of a:

Recent work by Mars and Turner (2015)suggests that Pell Grants:

Someone argues that under any voucher system,schools will try to avoid taking the students who are the most difficult to teach.This criticism is an example of the concern about:

The positive correlation between education and earnings is consistent with education as:

Which is TRUE about the international comparison of per pupil spending and educational attainment?

The Common Core is:

Why Study Public Finance

Theoretical Tools of Public Finance

Empirical Tools of Public Finance

Budget Analysis and Deficit Financing

Externalities- Problems and Solutions

Externalities in Action- Environmental and Health Externalities

Public Goods

Cost-Benefit Analysis

Political Economy

State and Local Government Expenditures

Social Insurance- the New Function of Government

Social Security

Unemployment Insurance, disability Insurance, and Workers Compensation

Health Insurance I- Health Economics and Private Health Insurance

Health Insurance Ii- Medicare, medicaid, and Health Care Reform

Income Distribution and Welfare Programs

Taxation- How It Works and What It Means

The Equity Implications of Taxation- Tax Incidence

Taxes on Labor Supply

Taxes on Savings

Taxes on Risk Taking and Wealth

Taxation of Business Income

Fundamental Tax Reform and Consumption Tax

Filters

The argument that a voucher system will the efficiency of schools is ___ if there is a lot of Tiebout sorting on the basis of education.

When a talented student from a poor family is unable to receive a loan because she has no collateral,this _ can be addressed by __.

If education serves to separate high-ability workers from low-ability workers,it _ play a valuable social role,and the educational institutions that do this best should be ___.