Briefly explain why government subsidies are a reason for the declining student performance in public education
What will be an ideal response?
This is due to the incentive problems of government subsidies in public education. Many public schools may face little or no competition from unsubsidized education providers, and they may provide subsidized services but contribute little to student learning.
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The level of potential GDP does not change because the factors determining potential output are fixed in the short run
Indicate whether the statement is true or false
As the U.S. economy expanded and entered the 20th century, its federal government's need for renewable revenue sources grew. Expenditures significantly increased for all of the following reasons except
(a) Military (b) Expanding regulatory agencies (c) Public works, education and sanitation (d) Foreign interventionism
In the expression Pr(deny = 1| P/I Ratio, black) = ?(-2.26 + 2.74P/I ratio + 0.71black), the effect of increasing the P/I ratio from 0.3 to 0.4 for a white person
A) is 0.274 percentage points. B) is 6.1 percentage points. C) should not be interpreted without knowledge of the regression R2. D) is 2.74 percentage points.
The school of economic thought which argues that through tax reductions, and deregulation, government creates the proper incentives for the private sector to increase aggregate supply is known as the:
a. rational expectations school. b. neo-Keynesian school. c. supply-side school. d. new classical school. e. classical school.