Education Quiz on Government Expenditures

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Questions and Answers

What is the single largest expenditure item for state and local governments?

Education

The U.S. spends on education than most countries but _ ______ leading countries.

more; falls behind

What are three public benefits of government involvement with education?

Higher productivity, informed and active voters, and reduced credit market failure.

What is an educational voucher?

A fixed amount of money given by the government to families with school-age children to spend at any type of school. Signup and view all the answers

What is the goal of educational vouchers?

To put private and public schools on equal footing. Signup and view all the answers

What are two benefits of educational vouchers?

They allow individuals to match educational choices with their tastes and benefit the education market through competition. Signup and view all the answers

What do critics of the vouchers system say will happen?

Vouchers will lead to excessive school specialization and segregation. Signup and view all the answers

What is a magnet school?

Special public schools set up to attract talented students interested in a specific subject or teaching style. Signup and view all the answers

What is a Charter School?

Schools financed with public funds that are not usually under the direct supervision of local school boards. Signup and view all the answers

What was passed in 2001 to create accountability measures?

No Child Left Behind Signup and view all the answers

What are some unintended consequences of accountability programs?

Teaching to the test, manipulating test-taker pool, and encouraging cheating. Signup and view all the answers

What are the two main interpretations of education?

Education as human capital accumulation and education as a screening device. Signup and view all the answers

What was Project STAR?

A study of classroom size to test score correlation. Signup and view all the answers

What are the three sources from which higher education receives government funding?

State and local funding, Pell grants, tax breaks. Signup and view all the answers

What is 'State Provisions'?

The primary form of government financing of higher education that involves direct provision. Signup and view all the answers

What are 'Pell Grants'?

A subsidy to higher education administered by the federal government for low-income families. Signup and view all the answers

What are guaranteed student loans?

Loans from private banks guaranteed for repayment by the government. Signup and view all the answers

_ __ help families that send their children to college.

Tax credits Signup and view all the answers

The major motivation for government intervention in higher education is not to produce positive externalities but rather to correct ___________________.

correct the failure in the credit market for student loans Signup and view all the answers

The provision of _________, an impure public good, is one of the most important governmental functions in the U.S.

Education Signup and view all the answers

The optimal amount of government intervention in education markets depends on ___________.

the extent of market failures in private provision of education and on the public returns to education Signup and view all the answers

Study Notes

Education Spending and Government Involvement

Education is the largest expenditure for state and local governments.
The U.S. invests more in education than most countries but still falls behind leading nations in terms of outcomes.

Public Benefits of Government Education Involvement

Productivity increases lead to a higher standard of living.
Increased citizenship through informed and active voters.
Mitigates credit market failure by providing access to education without excessive borrowing.

Educational Vouchers

Vouchers are fixed amounts of money provided by the government for families to spend on any school, public or private.
Their goal is to equalize opportunities between private and public schools.

Advantages and Criticisms of Vouchers

Vouchers enable individuals to choose educational options that align with their preferences.
Competition in the education market benefits overall quality.
Critics argue that vouchers may result in greater school specialization and segregation.

Specialized Schools

Magnet schools are public schools designed to attract talented students with specific interests or teaching styles.
Charter schools receive public funding but operate outside local school board regulations.

Accountability in Education

The No Child Left Behind Act was instituted to create accountability measures within education systems.
Unintended consequences of accountability may include teaching to standardized tests, manipulating test demographics, and encouraging dishonest practices.

Interpretations of Education

Education can be perceived as human capital accumulation, enhancing individuals' skills.
Alternatively, it is seen as a screening device that differentiates between high- and low-ability students.

Project STAR

Project STAR investigated the relationship between classroom size and student test scores.

Funding in Higher Education

Higher education receives funding from state and local sources, Pell grants, and tax breaks.
Direct provision by the government is the primary financing method for higher education.

Financial Aids and Loans

Pell Grants are federal subsidies for low-income families, covering educational expenses.
Guaranteed student loans from private banks are backed by the government for repayment assurance.
Tax credits are available to assist families sending children to college.

Government Motivation and Education

Government intervention in higher education primarily aims to correct credit market failures for student loans.
The provision of education is viewed as a crucial governmental function, considered an impure public good.

Intervention in Education Markets

The optimal level of governmental intervention depends on the extent of market failures in private education provision and anticipated public returns from education.

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Description

Test your knowledge on education funding and government involvement in public education. This quiz covers key facts about expenditure, comparisons with other countries, and the benefits of government involvement in education. Perfect for students of educational policy.