Assume that spending more on education ensures higher quality of education. Whic
ID: 1138184 • Letter: A
Question
Assume that spending more on education ensures higher quality of education. Which of the following could result from government providing a fixed amount of education?
Select one:
a. Some families would reduce the amount of education they consume.
b. Some families would increase the amount of education they consume.
c. Some families might not change the amount of education they consume.
d. All of the above
e. Both A and B
Student loans made from US Department of Education instead from a private lender are referred to as which of the following?
Select one:
a. Direct student loans
b. Deferred student loans
c. Subsidized student loans
d. Guaranteed student loans
e. Student mortgages
You hear a politician say that government should be involved in the education of children to ensure that poor children can become doctors, lawyers, and executives. Which justification for intervention is the politician using?
Select one:
a. Credit market failure
b. Productivity spillovers
c. Redistribution
d. A less criminally inclined public
e. The failure of family utility maximization
Explanation / Answer
Q.1 Option c. The contribution from family might vary
Q.2 Option d. These are federal or state funded loans for students looking to finance their college education.
Q3. Option c. Distribution of money typically to achieve a greater social equality