If you grant that the long-term benefits of Head Start are in doubt and focus, instead, on the short-term benefits, you find that
A. children in Head Start are more likely to need special education classes.
B. children in Head Start are less likely to repeat first or second grade.
C. Head Start has no effect there either.
D. Head Start children do much worse in Kindergarten.
Answer: B
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Refer to Figure 15-4. In the figure above, a movement from point A to point B would be caused by
A) an increase in the interest rate. B) a decrease in the price level. C) a decrease in real GDP. D) an increase in the price level.
Suppose a competitive firm is paying a wage of $12 an hour. Assume that labor is the only input. If hiring another worker would increase output by four units per hour, then to maximize profits the firm should
A) layoff some workers. B) not change the number of workers it currently hires. C) hire the extra worker. D) There is not enough information to answer the question.
With the increase in school attendance throughout the world, the newest challenge for development economists is increasing:
A. availability of education to children. B. the quality of education to children. C. the availability of college education. D. the consistency of education across countries.
The problem that arises in markets in which the seller knows more about the characteristics of the good being sold than the buyer knows is