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. Head Start children do much worse in Kindergarten.
B. children in Head Start are more likely to repeat first or second grade.
C. Head Start has no effect there either.
D. children in Head Start are less likely to need special education classes.
Answer: D
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Positive analysis:
A. is the best way to analyze a policy. B. leads to the best solutions. C. is the only way to analyze a policy. D. examines if the policy actually accomplished its goals.
Government decisions tend to be biased against actions that have
a. current costs and future benefits that are both easily observable. b. future costs that are difficult to identify and current benefits that are easily observable. c. future costs and future benefits that are both difficult to identify. d. current costs that are easily observable and future benefits that are difficult to identify.
Ceteris paribus, which of the following will cause the demand for peanut butter to decrease?
A. The factories that produce peanut butter close down for safety reasons. B. The workers who pick peanuts, the main ingredient in peanut butter, demand a higher wage. C. Many people learn that they are allergic to peanut butter. D. It is reported that peanut butter prevents heart attacks.
The federal funds rate is the interest rate on short-term loans made by:
A. the Federal Reserve to the federal government. B. the Federal Reserve to commercial banks. C. commercial banks to other commercial banks. D. the federal government to commercial banks.