Deck 36: Economics of K-12 Education

Question 1

Examine Figure 36.1, which shows the market for K-12 education in an economy. The amount of external benefits associated with K-12 education in this market is _____ per student: Figure 36.1

A)$4,000
B)$6,000
C)$8,000
D)$12,000

Answer 1

C

Question 2

In the presence of positive externalities, a market will charge ______ and produce _____.

A)the correct amount; the correct amount
B)too much; the correct amount
C)the correct amount; too little
D)too little; too little

Answer 2

D

Question 3

Examine Figure 36.1, which shows the market for K-12 education in an economy. If the market is unsubsidized, the equilibrium number of students educated is Figure 36.1

A)10,340.
B)20,000.
C)40,000.
D)40,640.

Answer 3

B

Question 4

The form of capital through which education increases productivity is

A)physical capital.
B)human capital.
C)human principal.
D)brain capital.

Question 5

In the presence of positive external benefits, the efficient price to charge parents for the education of their children is

A)always zero.
B)greater than the market price.
C)always positive.
D)less than the market price.

Question 6

Quick conclusions about the behavior of real per student spending must be made with care because

A)more money is spent on special education, and less is spent on everything else.
B)more money is spent on non-instructional needs, and less is spent on instruction.
C)less money is spent on special education and less is also spent on everything else.
D)though more money is spent per student, an increasing share goes to non-instructional needs.

Question 7

Examine Figure 36.1, which shows the market for K-12 education in an economy. If K-12 education is completely subsidized, _____ the optimal tuition per student is Figure 36.1

A)$2,000.
B)$1,500.
C)$500.
D)$0

Question 8

Since the 1960's student-teacher ratios have ___________ from _____ to ______.

A)increased; 15; 26
B)decreased; 26; 15
C)decreased; 35; 15
D)decreased; 17; 15

Question 9

Examine Figure 36.1, which shows the market for K-12 education in an economy. Suppose the K-12 education market is subsidized. The tax payers pay _____ per student. Figure 36.1

A)$4,000
B)$6,000
C)$8,000
D)$12,000

Question 10

The economic argument that it is in society's best economic interest to pay for the education of "someone else's child" is the

A)positive marginal benefit argument.
B)positive externalities argument.
C)positive marginal cost argument.
D)moral obligation argument.

Question 11

Quick conclusions about the behavior of SAT scores should be made with care because

A)fewer, and on average more academically capable, people take the exam now than years ago.
B)more, and on average more academically capable, people take the exam now than years ago.
C)fewer, and on average less academically capable, people take the exam now than years ago.
D)more, and on average less academically capable people, take the exam now than years ago.

Question 12

Quick conclusions about real per student spending should be made with care because

A)more money is spent on special education, and less is spent on everything else.
B)more money is spent on non-instructional spending, and less is spent on instructional spending.
C)less money is spent on special education, and less is also spent on everything else.
D)more money is devoted education generally, but an increasing share is spent on special education.

Question 13

If a child is more apt to grow up to become a successful contributing member of society because of an education, this benefit to society is called a

A)negative externality.
B)positive marginal private benefit.
C)positive externality.
D)positive marginal private cost.

Question 14

Since 1960, high school graduation rates have

A)increased for whites but not for Hispanics and African Americans.
B)increased for African Americans and Hispanics but not for whites.
C)decreased across the board.
D)increased across the board, but proportionally more for African Americans.

Question 15

Examine Figure 36.1, which shows the market for K-12 education in an economy. If K-12 education is completely subsidized, _____ students will be educated. Figure 36.1

A)10,340.
B)20,000.
C)40,000.
D)40,640.

Question 16

In determining whether a further investment in education for a individual is worth the costs, an economist would look at whether the sum of the

A)annual education costs is exceeded by the sum of annual income to the person.
B)annual education costs is exceeded by the sum of the increases in income that are attributable to the increased education.
C)present value of the annual education costs is exceeded by the sum of the present value of the annual income to the person.
D)present value of the annual education costs is exceeded by the sum of the present value of the increases in income that are attributable to the increased education.

Question 17

From 1960 to 2010 the amount of money spent on K-12 education has _______ in dollar terms, ______ in real terms and _______ in real dollars per student terms.

A)increased; decreased; decreased.
B)decreased; increased; decreased
C)increased; decreased; increased.
D)increased; increased; increased.

Question 18

SAT scores are ________ than they were in the 1960's ___________ they were in 1980.

A)higher; and much higher than
B)lower; and much lower than
C)lower; but higher than
D)lower; but about the same as

Question 19

Though there is no tuition to public elementary and secondary schools, economists do not say that it is free because

A)parents have to buy pencils and paper.
B)taxpayers pick up the tab for considerable costs of education.
C)parents have to help their kids learn.
D)teachers do not love to teach bad students.

Question 20

Examine Figure 36.1, which shows the market for K-12 education in an economy. If the market is unsubsidized, the equilibrium tuition fees per student for K-12 education is Figure 36.1

A)$4,000.
B)$6,000.
C)$8,000.
D)$12,000.

Question 21

The educational production function shows the _____ relationship between _____ and _____.

A)positive; test scores; teacher quality
B)negative; test scores; teacher quality
C)positive; student enrollments; tuition
D)negative; student enrollments; tuition

Question 22

Which of the following is true of the structure of the public education system in the United States?

A)School principals do not have budgetary incentives to make bad teachers better.
B)Parents can threaten principals to move their kids to a private school if they are disappointed with the quality of education.
C)Teachers are paid based solely on their performance and abilities.
D)Teachers receive monetary incentives to educate students with special needs.

Question 23

The academic ability of students studying to be teachers has

A)remained roughly the same in time.
B)increased markedly in recent years.
C)decreased markedly, particularly among men, in recent years.
D)decreased markedly, particularly among women, in recent years.

Question 24

Tenure for a public school teacher means that

A)they have taught at least ten years.
B)they have received a teaching award.
C)they cannot be fired unless they commit a particularly onerous violation of the rules.
D)they are a member of the union.

Question 25

It is generally _____ to fire a bad public school teacher ________.

A)easy,; who has little interest in teaching any longer.
B)easy; who has tenure
C)impossible; who has committed a felony.
D)difficult; who has tenure.

Question 26

The educational outcomes at private schools are generally _____ those in public schools.

A)the same as
B)better than
C)worse than
D)incomparable to

Question 27

Economists Hoxby and Leigh have identified that, over the years,

A)less bright women are shifting more toward teaching jobs.
B)brighter women are shifting more toward teaching jobs.
C)less bright men are shifting more toward teaching jobs.
D)brighter men are shifting more toward teaching jobs.

Question 28

School voucher programs

A)are universally hailed by teachers unions.
B)have not been tried in the United States.
C)have had modest success in some experimental locations.
D)have had students perform much worse than equally-situated students in public schools.

Question 29

The empirical evidence suggests that greater spending on public education in the 1980's and 1990's _____________ impact on education outcomes.

A)had an enormous positive
B)had a small positive
C)had a perversely negative
D)had no significant

Question 30

Unions in general, and teachers' union in particular, prefer that salaries be based solely on _____ of the worker.

A)education and income class
B)gender and education
C)education and seniority
D)gender and seniority

Question 31

In the analysis of educational spending on outcomes, it is generally the case that

A)only the spending devoted to raising teacher salaries matters.
B)only the spending on reducing class size matters.
C)spending on raising teacher salaries and reducing class size matters.
D)neither higher salaries nor reduced class size matters.

Question 32

The empirical finding that increased spending has no significant impact on educational outcomes.

A)is absolutely inconsistent with the idea of an educational production function.
B)is consistent with the "steep part of the curve" on the educational production function.
C)is consistent with the "flat part of the curve" on the educational production function.
D)has been shown to be a lie propagated by the anti-public education movement.

Question 33

The academic ability of women studying to be teachers has declined in recent years because

A)bright women have other, more economically lucrative opportunities.
B)the rate of pay for female teachers is much less than for equally qualified male teachers.
C)the nominal rate of pay for all teachers has decreased.
D)of the increased outsourcing of teaching jobs.

Question 34

Quick conclusions about high school graduation rates should be made with care because

A)the significant increase in the granting of less valuable GEDs.
B)the phenomenon of social promotion.
C)the phenomenon of social promotion and the significant increase in the granting of less valuable GEDs.
D)the decrease in reported graduation rates reflects more stringent graduation standards.

Question 35

It is difficult to directly compare outcomes at private schools with those at public schools because

A)private schools universally spend more per child than public schools.
B)private schools generally have children whose parents earn more income and value education.
C)private schools generally have teachers with more advanced degrees.
D)private schools are generally religious and religious students do not do as well.

Question 36

Most public school systems operate in a

A)purely private, monopolistic environment.
B)purely public, monopolistic environment.
C)purely private, perfectly competitive environment.
D)purely public, perfectly competitive environment.

Question 37

It is difficult to directly compare outcomes at private schools with those at public schools because

A)private schools universally spend more per child than public schools.
B)private schools generally have children whose parents are more involved in their children's education.
C)private schools generally have teachers with more advanced degrees.
D)private schools are generally religious and religious students do not do as well.

Question 38

Most public school teachers are

A)free agents, negotiating their salaries each year as individuals.
B)members of a union, with pay determined by a scale recognizing only teacher quality.
C)members of a union, with pay determined by a scale recognizing only length of service and educational attainment.
D)members of a union, but must negotiate their pay as individuals.

Question 39

Eric Hanushek, from his research, concluded that

A)K-12 teachers should be paid high salaries.
B)K-12 education should be completely subsidized.
C)spending more on education is a waste of taxpayers' resources.
D)the higher is the class size, the higher will be spending per student.

Question 40

Social promotion suggests that students are

A)only allowed to proceed to the next grade if they meet minimum behavioral standards.
B)granted diplomas for survival, rather than for achievement.
C)only allowed to graduate after taking a state exam.
D)given an opportunity to go back and take courses to improve their grades.

Question 41

In 2014, the U.S. spent ________ to educate _________ elementary and secondary school students.

A)$223 million; 152 million
B)$440 billion; 152 million
C)$599 billion; 110 million
D)$700 billion; 63 million

Question 42

As real interest rates increase, other things equal, the net present value of education is likely to

A)increase.
B)remain unchanged.
C)decrease, possibly becoming negative.
D)decrease, but necessarily remain positive, since more knowledge is always a good thing.

Question 43

Which of the following statements is true of the of the school voucher program in the U.S.?

A)Both Republican and Democrats prefer the school voucher program.
B)Both Republican and Democrats advocate against the school voucher program.
C)Republicans prefer the school voucher program, whereas the Democrats do not.
D)Democrats prefer the school voucher program, whereas the Republicans do not.

Question 44

Teacher pensions in the U.S. are frequently defined by the "_____" clause.

A)rule of 60
B)rule of 65
C)rule of 70
D)rule of 85

Question 45

Cherry picking is the act of

A)admitting the most expensive students, leaving the less expensive ones to public schools.
B)admitting students who are easy to educate, leaving the harder ones to public schools.
C)employing highly educated teachers, leaving the less educated ones to public schools.
D)employing highly experienced teachers, leaving the less experienced ones to public schools.

Question 46

Economists Lochner and Moretti have identified external benefits to education in the form of

A)improved melodies produced by better-educated musicians.
B)the higher quality of elected officials chosen by better-educated voters.
C)higher salaries earned by better-educated engineers.
D)education-related crime reductions.

Question 47

In 2011, these states saw challenges to the collective bargaining rights of their teachers.

A)Wisconsin and Indiana
B)New York and California
C)Nevada and Texas
D)Alabama and Florida

Question 48

The difference between the present value of all benefits and the present value of all costs is the

A)"net present value" of an education.
B)current market value of knowledge.
C)subjective rate of return on an education.
D)external benefit from education.

Question 49

Over the years, teachers' salaries in the U.S. have _____ with inflation and _____ relative to the salaries of equally credentialed occupations.

A)increased; increased
B)increased; decreased
C)decreased; increased
D)decreased; decreased

Question 50

Public teacher layoffs, in most states, would be

A)last in, first out.
B)first in, first out.
C)among the best teachers.
D)among the worst teachers.

Question 51

A public teacher's pension is likely to be

A)defined benefit.
B)defined contribution.
C)whatever they saved for themselves because they are not eligible for a pension or for Social Security.
D)Social Security only.

Question 52

Research by Jonah Rockoff suggests that there is

A)a positive relationship between teacher performance and student achievements.
B)no relationship between teacher performance and student achievements.
C)a positive relationship between the number of teachers and class sizes.
D)no relationship between the number of teachers and class sizes.

Question 53

A teacher's pension is likely to be determined

A)by the number of years they taught and by a percentage of their last year's salary.
B)a state legislature that can increase or decrease it at will.
C)the amount they contributed.
D)a state governor that can increase or decrease it at will.

Question 54

In 2011, Wisconsin and Indiana state legislatures were focused on which of the following costs of public education?

A)Material costs
B)Teacher salaries
C)Defined benefit pensions
D)Defined contribution pensions

Question 55

Research by Eric Hanushek and others suggests that increasing the number or quality of teachers will

A)reduce student test scores.
B)increase student test scores by ever-increasing amounts.
C)increase student test scores by ever-decreasing amounts.
D)foment unrest among unionized teachers and school administrators.