Deck 10: Educational Reform: the Role of Incentives and Choice

Question 1

In high stakes testing, student performance on achievement tests could affect grade promotion, high school graduation, and even employment.

Answer 1

True

Question 2

If driving privileges were contingent on academic achievement, this would increase the perceived benefits of achievement.

Answer 2

True

Question 3

It would be appropriate to grade a high-stakes test on a "curve".

Answer 3

False

Question 4

At low rates of graduation, there are probably no external benefits associated with increasing the rate.

Question 5

Learning how to ride a bicycle requires specific knowledge because it must be learned through trial and error.

Question 6

The policy of requiring more courses as a condition of graduation has been politically popular, but economists don't expect it to raise achievement levels.

Question 7

Using achievement scores to make grade promotion and graduation decisions raises the stakes associated with achievement from the teacher's point of view, but does not affect the perceived benefits for the student.

Question 8

The U.S. outperforms most nations in science, but lags behind most nations in math.

Question 9

Our society provides secondary education with no charge for tuition probably because of the ideal of equal opportunity.

Question 10

Economists do not believe that students are capable of comparing the marginal benefits of academic achievement to the appropriate marginal costs of achievement.

Question 11

Only Switzerland spends more per pupil than the U.S.

Question 12

Lost wages from a part-time job might be one opportunity cost associated with academic achievement.

Question 13

The TIMSS is a comparison of mathematics and science achievement in the participating nations.

Question 14

According to Hanushek, a leading authority on the economics of education, there is widespread evidence that we should expand traditional resources to education.

Question 15

Because large benefits are expected to be gained through high-stakes testing, the U.S. school system should definitely adopt the practice.

Question 16

Aggregate student rewards from additional effort are subject to decreasing marginal benefits.

Question 17

Since 1969, spending per pupil in the U.S. has remained constant, but achievement scores have fallen.

Question 18

The equilibrium level of student achievement occurs when marginal benefits of achievement are greater than marginal costs of achievement.

Question 19

Markets automatically reward good decisions with increased wealth.

Question 20

General knowledge tends to be difficult or costly to transmit to another person.

Question 21

Which best describes the beliefs of Thomas Jefferson and Adam Smith concerning public education?

A) Smith and Jefferson had not yet developed the ideas of achievement standards.
B) Smith and Jefferson believed that primary education should be free to all.
C) Both Smith and Jefferson believed that primary education should be compulsory.
D) Smith and Jefferson would probably have approved of a "mixed" K-12 system that included private and public schools, as well as home-schooling.

Question 22

Which is probably true about the U.S. educational system?

A) Graduation rates are so low, that large external benefits could be realized by increasing the rate.
B) Graduation rates are high enough that external benefits associated with increasing the rate even further are probably very small or non-existent.
C) External benefits are a strong argument for free secondary education in the U.S.
D) None of the above.

Question 23

A state department of education (SDE) is apt to be politicized and be responsive to special interest groups as well as to school children and their parents.

Question 24

An absolute grading scale for high stakes test:

A) is based on an external standard.
B) prevents teachers from judging students relative to their classmates.
C) would strengthen the incentive for students to perform well.
D) all of the above.

Question 25

The text compares state departments of education to state owned enterprises (SOEs).

Question 26

Which of the following might students perceive as benefits from additional academic achievement?

A) promotion
B) graduation
C) college admission
D) all of the above

Question 27

Of the participating countries in the TIMSS study:

A) the Netherlands was ranked first and the U.S. was ranked last.
B) the U.S. was ranked near the bottom in both math and science.
C) the U.S. was ranked near the bottom in science but performed somewhat better in math.
D) the U.S. was ranked near the top in both math and science.

Question 28

Which country spends more per pupil than the United States?

A) Switzerland
B) Netherlands
C) France
D) None, U.S. is the highest spending nation.

Question 29

Many public colleges and universities base admissions on:

A) ACT scores
B) high school grade point average (GPA)
C) rank in high school graduating class
D) all of the above

Question 30

Justice that emerges from voluntary exchange is called:

A) commutative justice.
B) distributive justice.
C) equal opportunity.
D) the principle of economic organization.

Question 31

The hope that equal opportunity combined with voluntary exchange will move people toward equality is called:

A) commutative justice.
B) the principle of economic organization.
C) distributive justice.
D) the automatic market response to inequality.

Question 32

Why do achievement tests need to have their "stakes" risen?

A) The higher stakes create a prospect of greater rewards, which causes students to increase their effort toward academic achievement.
B) Higher stakes will mean bigger rewards for teachers whose students score high on achievement tests.
C) Actually, requiring more courses in math and science is a more promising policy for increasing achievement.
D) Higher stakes achievement tests will require that students only work a limited number of hours per week.

Question 33

Education special interest groups include the teachers' union, environmental organizations, and other organizations promoting ideological and religious ends.

Question 34

Which is not a characteristic of high-stakes testing?

A) universal
B) based on absolute performance standards
C) based on memorization
D) internationally referenced

Question 35

Teachers in the U.S. must operate in a system where government interferes with their professional judgment by imposing mandates and non-academic objectives.

Question 36

Which statement best describes the conclusions of expert, Eric Hanushek?

A) Studies of class size and pupil-teacher ratios lend very little support to policies aimed at expanding these resources.
B) Studies of class size and pupil-teacher ratios indicate that these variables are currently at efficient levels in the U.S.
C) Studies indicate that funds should be spent in order to decrease pupil-teacher ratios even further in the U.S.
D) The problem of low achievement in the U.S. could be solved by reallocating resources from other government programs to public education.

Question 37

Of the participating countries in the TIMSS study:

A) the Netherlands has the lowest spending per pupil but posted the highest scores in math.
B) spending per pupil appears to have an important positive impact on math scores.
C) only Switzerland spends more per pupil than the U.S.
D) Switzerland spends more per pupil in math and posted the highest scores in math.

Question 38

Which is a possible reason why the decline in the pupil-teacher ratio in the U.S. did not increase achievement?

A) Because of low salaries offered to teachers, the instruction was of low quality.
B) More instructional resources were devoted to special education.
C) Resources were shifted from instruction to capital improvements such as new buildings.
D) None of the above. The declining pupil-teacher ratio has had the desired effect of increasing achievement in the U.S.

Question 39

Which of the following statements is correct?

A) Students will increase effort toward academic achievement as long as the marginal benefits of achievement are greater than the marginal costs.
B) In the aggregate, the marginal benefit of achievement will increase as more effort is devoted to achievement.
C) Students' effort toward achievement is not related to marginal benefits and costs.
D) Aggregate student achievement is not subject to increasing marginal costs.

Question 40

Of the three principles of the economic approach to organization, the U.S. system of public education is consistent with just one of the principles.

Question 41

A 1993 survey shows that parents of most of the students in private schools were:

A) not satisfied with the school and their academic standards.
B) somewhat satisfied with the school and their academic standards.
C) very satisfied with the school and their academic standards.
D) very unsatisfied with the school and their academic standards.

Question 42

Use the following diagram to answer the following questions.

Refer to Diagram 10-1. If marginal social costs are equal toMSC1, what is the efficient quantity of education?

A) E₄
B) E₃
C) E₂
D) E₁

Question 43

Which statement is true?

A) School districts do not have many characteristics in common with a large organization.
B) School districts are consistent with the three principles of economic organization.
C) A state department of education can be thought of as the central planning office of a state-owned enterprise.
D) None of the above are true.

Question 44

Use the following diagram to answer the following questions.

Refer to Diagram 10-1. If marginal social costs are equal to MSC1, what is the equilibrium quantity of education that will be chosen by individuals?

A) E₂
B) E₁
C) E₄
D) E₃

Question 45

Which is true about the policy of requiring more courses as a condition for graduation?

A) The policy is not politically popular.
B) Economists question whether the policy will be effective.
C) Economists believe government specified approaches are likely the most beneficial.
D) All of the above are true.

Question 46

Increasing student achievement can be motivated by:

A) lowering the opportunity cost of studying.
B) raising the opportunity cost of studying.
C) decreasing the marginal benefit of achievement.
D) shifting the marginal benefit of achievement to the left.

Question 47

Which of the following is a non-academic objective that teachers are often expected to achieve?

A) school district population growth
B) national mathematics standards
C) developing a drug-free America
D) All of the above

Question 48

What are some benefits of introducing competition into the public school system?

A) Schools would not have to respond to the demand of parents.
B) Schools would have to evaluate teachers based on their success with students.
C) Schools would not have to be concerned about over-spending.
D) All of the above.

Question 49

Knowledge that is gained as members of an organization interact is called:

A) general knowledge.
B) specific knowledge.
C) tacit knowledge.
D) assembled knowledge.

Question 50

Use the following diagram to answer the following questions.

Refer to Diagram 10-1. External benefits exist for all levels of education less than quantity:

A) E₁
B) E₃
C) E₂
D) E₄

Question 51

According to economists, which policies have the potential to increase achievement in U.S. public schools?

A) competition among schools.
B) high-stakes testing.
C) requiring more courses in math and science.
D) both a and b

Question 52

The achievement measured by high stakes testing

A) is comparable to grade point averages.
B) provides benefits greater than costs.
C) is considered faulty and should not be used.
D) none of the above.

Question 53

Which is not a kind of specific knowledge discussed in the text?

A) historical knowledge
B) assembled knowledge
C) tacit knowledge
D) local knowledge

Question 54

Which of the following is a reason why estimates of additional earnings expected to be gained from high-stakes testing is probably understated?

A) The estimates already reflect earnings attributable to on-the-job training.
B) The estimates already reflect earnings differentials realized through college attendance.
C) The estimates are based on data from low-stakes environments.
D) All of the above are reasons.

Question 55

Which of the following are benefits of introducing competition into the public school system?

A) Competition could cause schools to reduce costs.
B) Competition could cause schools to improve the schooling they offer.
C) Parents would be allowed to choose schools on the basis of their reputation in motivating students to succeed academically.
D) All of the above.

Question 56

Which of the following is true about privatization?

A) Privatizing public schools would increase the political influence in the education system.
B) Private incentives distort costs and benefits hence reduce efficiency.
C) Privatization would introduce market incentives into the U.S. educational system.
D) Privatization would not introduce market incentives into the U.S. educational system.

Question 57

Like many other government protected monopolies, the U.S. educational system:

A) operates at minimum cost.
B) wastes a good deal of its resources.
C) does not want to increase output (achievement).
D) is consistent with the principles of economic organization.

Question 58

Which statement about the benefits and costs of high-stakes testing is correct?

A) Benefits clearly outweigh costs
B) The tests should be adopted on the basis of their high expected benefits.
C) The costs are believed to outweigh the benefits.
D) The size of benefits relative to costs is unknown.

Question 59

Which is not a principle of economic organization?

A) Markets automatically assign decision rights to those with the most useful specific knowledge.
B) Markets automatically subsidize government owned enterprises.
C) Markets automatically evaluate decisions, using profitability as a performance measure.
D) Markets automatically reward good decisions.

Question 60

Knowledge that can be easily transferred to another person is called:

A) general knowledge
B) specific knowledge.
C) tacit knowledge.
D) rewarded knowledge.

Question 61

Among the participating countries in the TIMSS study, discuss the relationship between per pupil spending and academic achievement.

Question 62

David decides to market a new product. This is an example of how markets:

A) automatically decentralize decision making.
B) fail to out weed inferior products.
C) violate the principles of organization.
D) automatically reward those who make good decisions.

Question 63

Teacher performance is often irrelevant in their salary determination.As a result:

A) teachers are motivated to help students achieve more.
B) few teachers work hard.
C) School test scores are increasing.
D) None of the above.

Question 64

Cindy says that she really has to work with a new software application for several weeks before she will understand it.This is a form of:

A) local knowledge.
B) assembled knowledge.
C) tacit knowledge.
D) general knowledge.

Question 65

Use the following diagram to answer the following questions.

Refer to Diagram 10-1. When marginal social costs are equal to MSC1:

A) the equilibrium quantity < socially efficient quantity.
B) the equilibrium quantity > socially efficient quantity.
C) the equilibrium quantity = socially efficient quantity.
D) the argument for government subsidization is weaker than it would be if marginal social costs were equal to MSC2.

Question 66

If the number of hours that teens could legally work per week was limited, the result would be:

A) increases in the opportunity cost of achievement.
B) reductions in the opportunity cost of achievement.
C) increases in the marginal benefit of achievement.
D) decreases in the marginal benefit of achievement.

Question 67

Which of the following is considered a problem with multiple choice achievement tests?

A) They are limited in their ability to measure analytical skills.
B) They are easy to grade.
C) They are not subject to manipulation by teachers.
D) There are no major problems with multiple choice tests.

Question 68

Use the following diagram to answer the following questions.

Refer to MBA. High-stakes testing is incorporated into public schools, what might be the expected result?

A) Marginal benefits shift from MBA₁ to MBA₂.
B) Achievement declines from A₂ to A₁.
C) No change is predicted.
D) Marginal benefits shift from MBA₂ to MBA₁.

Question 69

Use the following diagram to answer the following questions.

Refer to MBA. Assume marginal social benefits are equal to MBA₁, the efficient level of achievement would be:

A) Somewhere between A₁ and A₂
B) A₁
C) A₂
D) There is no way to tell.

Question 70

Thomas is a college freshman, and this is his first day on campus. This is a form of:

A) local knowledge of the campus.
B) assembled knowledge of the campus.
C) scientific knowledge of the campus.
D) general knowledge of the campus.

Question 71

Which of the following will make it more likely that a student will study harder?

A) Colleges are willing to correct deficiencies through remedial courses.
B) Graduation from high school, by itself, is sufficient for admission to most colleges.
C) Employers begin to use school performance as a criterion for hiring.
D) It is highly unlikely that students will be required to repeat a grade.

Question 72

Use the following diagram to answer the following questions.

Refer to Diagram 10-1. When marginal social costs are equal to MSC2, which is true?

A) The socially efficient level of education = the equilibrium quantity of education.
B) There are no additional external benefits associated with more education.
C) There is not a compelling argument for government subsidization of education.
D) All of the above.

Question 73

Use the following diagram to answer the following questions.

Susie has been earning better grades this semester, but feels that any further improvements will cause her to have to reduce her hours worked at a part time job.

A) Susie believes that increasing her academic standing will increase her marginal costs.
B) Susie is not making a rational decision.
C) If the marginal benefits of achievement were to increase for Susie, she still would not attempt to improve her academic standing.
D) With respect to academic achievement, Susie's MB > MC.

Question 74

Making driving privileges contingent upon academic performance:

A) will increase the marginal benefits of achievement.
B) will decrease the marginal benefit of achievement.
C) will probably not affect marginal benefit of achievement.
D) will likely cause achievement levels to fall.

Question 75

Using examples, describe how the U.S. system of public education is inconsistent with each of the principles of organization.

Question 76

What are the two arguments for government support of secondary education?

Question 77

Use the following diagram to answer the following questions.

Refer to Diagram 10-1. When marginal social costs are equal to MSC2, what is the equilibrium level of education?

A) E₁
B) E₂
C) E₃
D) E₄

Question 78

State departments of education typically establish ground rules for curriculum and textbooks. This violates which of the market organizing principles?

A) Markets automatically assign decision rights to those with the most useful specific information.
B) Market automatically evaluate decisions.
C) Markets automatically reward good decisions.
D) None of the above.

Question 79

Use the following diagram to answer the following questions.

Refer to MBA. If high-stakes testing is used by employers for the hiring decision:

A) Marginal benefits shift from MBA₁ to MBA₂.
B) Achievement declines from A₂ to A₁.
C) No change is predicted.
D) Marginal benefits shift from MBA₂ to MBA₁.