Question 1

In 1948 the highest level of educational attainment of the U.S.population was

Accepted Answer

A)  not a high school graduate.
B)  high school graduate.
C)  some college.
D)  four or more years of college.

Question 2

The largest cost of attending college is

Accepted Answer

A)  tuition.
B)  tuition and books.
C)  room and board.
D)  foregone costs.

Question 3

Which of the following statements is most accurate?

Accepted Answer

A)  Because of the increase in skills and knowledge demand for workers decrease due to costs.
B)  Because of the increase in skills and knowledge demand for workers decrease due to productivity.
C)  Because of the increase in skills and knowledge demand for workers increase due to costs.
D)  Because of the increase in skills and knowledge demand for workers increase due to productivity.

Question 4

Societies will provide assistance and incentive to encourage people to increase education because

Accepted Answer

A)  the marginal cost of increasing educational attainment is less than the marginal benefit to society.
B)  the productive efficiency of education is limited to the level of private output.
C)  the optimal private level of educational attainment is lower than the socially optimal level of educational attainment.
D)  the level of external benefits is insufficient to cover the private benefits received. C

Question 5

Which of the following is included in the cost of education?

Accepted Answer

A)  Direct costs such as books
B)  Opportunity costs
C)  Time
D)  Direct costs and opportunity costs

Question 6

Economic research indicates that average teacher quality has fallen since the 1970s.Part of this decline can be attributed to

Accepted Answer

A)  alternative, better paying options available.
B)  selectivity of educational programs limiting entrance.
C)  the falling number of program completions.
D)  economic downturn causing fewer openings.

Question 7

Governments allocate large budgets to education at K-12 and university levels because _________________ and to ___________________.

Accepted Answer

A)  education generates positive externalities for society; increase people's incentives to obtain more education.
B)  education generates negative externalities for society; increase willingness to pay for education.
C)  resources are overallocated; create more efficiency in the market.
D)  education is a private good; provide easier access to education. A

Question 8

Because of education society experiences a

Accepted Answer

A)  positive private cost.
B)  positive private benefit.
C)  positive externality.
D)  negative externality.

Question 9

____________________ are benefits received by third parties.

Accepted Answer

A)  Positive externalities
B)  Negative externalities
C)  Positive private costs
D)  Positive private benefits

Question 10

Which of the following statements is true concerning marginal benefit and marginal cost of education?

Accepted Answer

A)  The marginal private benefit is less than the marginal private costs for the first few years of education.
B)  The marginal private benefit is equal to the marginal private costs for the first few years of education.
C)  The marginal private benefit is greater than the marginal private costs for the first few years of education.
D)  The marginal social benefit is greater than the marginal private costs for the first few years of education.

Question 11

In 2008 the highest level of educational attainment of the U.S.population was

Accepted Answer

A)  not a high school graduate.
B)  high school graduate.
C)  some college.
D)  four or more years of college.

Question 12

As years of education are increased

Accepted Answer

A)  external benefits increase.
B)  external benefits decrease.
C)  external benefits remain constant.
D)  the rate of change for external benefits increases after attainment of high school. B

Question 13

Because positive externalities present benefits on third parties

Accepted Answer

A)  private marginal benefits and social marginal benefits need to be considered to determine an optimal level of output.
B)  social marginal benefits and social marginal costs need to be considered to determine an optimal level of output.
C)  private marginal costs and private marginal benefits need to be considered to determine an optimal level of output.
D)  social marginal costs and private marginal benefits need to be considered to determine an optimal level of output.

Question 14

When a positive externality is present the market will produce

Accepted Answer

A)  an efficient amount and charge a fair price.
B)  too much product and charge a price greater than a fair market value price.
C)  too little product and charge less than a fair market value price.
D)  too little and charge more than a fair market value price.

Question 15

Mathematically the amount of the marginal benefit to society is

Accepted Answer

A)  external benefits minus private marginal benefits.
B)  private marginal benefits minus external benefits.
C)  private marginal benefits plus external benefits.
D)  Marginal benefits minus external benefits) 2.

Question 16

Jacob attends Greatland University.He is a full time student.Annually he pays $6,000 in tuition and fees, $8,000 for room and board, and $1,300 for books.He also estimates that because he has chosen to be a full time student he is giving up approximately $20,000 in income.He also gives up approximately $600 in interest to finance his education.Jacob's annual total cost of his education is

Accepted Answer

A)  $14,000.
B)  $15,300.
C)  $35,300.
D)  $35,900.

Question 17

The U.S.educational system is widely criticized because of

Accepted Answer

A)  the political debate among administration.
B)  the diversity of students and levels of abilities.
C)  the lack of parental involvement.
D)  the increased spending has not seemed to generate better educational outcomes.

Question 18

Research on school choice reform programs

Accepted Answer

A)  has been inconsistent in their results.
B)  has found little results that the programs generated systematic academic benefits.
C)  has found improved students' test scores.
D)  has found increased parental involvement.

Question 19

_________________ are costs imposed on third parties.

Accepted Answer

A)  Positive externalities
B)  Negative externalities
C)  Positive private costs
D)  Positive private benefits

Question 20

The acquired skills and knowledge that make people more productive is

Accepted Answer

A)  brain capital.
B)  human labor.
C)  human capital.
D)  physical capital.

Exam 17: The Economics of Education

In 1948 the highest level of educational attainment of the U.S.population was

Correct Answer
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The largest cost of attending college is

Correct Answer
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Which of the following statements is most accurate?

Correct Answer
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Societies will provide assistance and incentive to encourage people to increase education because

Correct Answer
verified
C

Which of the following is included in the cost of education?

Correct Answer
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Economic research indicates that average teacher quality has fallen since the 1970s.Part of this decline can be attributed to

Correct Answer
verified

Governments allocate large budgets to education at K-12 and university levels because _ and to ___.

Correct Answer
verified
A

Because of education society experiences a

Correct Answer
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____________________ are benefits received by third parties.

Correct Answer
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Which of the following statements is true concerning marginal benefit and marginal cost of education?

Correct Answer
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In 2008 the highest level of educational attainment of the U.S.population was

Correct Answer
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As years of education are increased

Correct Answer
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B

Because positive externalities present benefits on third parties

Correct Answer
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When a positive externality is present the market will produce

Correct Answer
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Mathematically the amount of the marginal benefit to society is

Correct Answer
verified

Correct Answer
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The U.S.educational system is widely criticized because of

Correct Answer
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Research on school choice reform programs

Correct Answer
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_________________ are costs imposed on third parties.

Correct Answer
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The acquired skills and knowledge that make people more productive is

Correct Answer
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Exam 17: The Economics of Education

In 1948 the highest level of educational attainment of the U.S.population was

Correct AnswerverifiedShow Answer

The largest cost of attending college is

Correct AnswerverifiedShow Answer

Which of the following statements is most accurate?

Correct AnswerverifiedShow Answer

Societies will provide assistance and incentive to encourage people to increase education because

Correct AnswerverifiedC

Which of the following is included in the cost of education?

Correct AnswerverifiedShow Answer

Economic research indicates that average teacher quality has fallen since the 1970s.Part of this decline can be attributed to

Correct AnswerverifiedShow Answer

Governments allocate large budgets to education at K-12 and university levels because _________________ and to ___________________.

Correct AnswerverifiedA

Because of education society experiences a

Correct AnswerverifiedShow Answer

____________________ are benefits received by third parties.

Correct AnswerverifiedShow Answer

Which of the following statements is true concerning marginal benefit and marginal cost of education?

Correct AnswerverifiedShow Answer

In 2008 the highest level of educational attainment of the U.S.population was

Correct AnswerverifiedShow Answer

As years of education are increased

Correct AnswerverifiedB

Because positive externalities present benefits on third parties

Correct AnswerverifiedShow Answer

When a positive externality is present the market will produce

Correct AnswerverifiedShow Answer

Mathematically the amount of the marginal benefit to society is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The U.S.educational system is widely criticized because of

Correct AnswerverifiedShow Answer

Research on school choice reform programs

Correct AnswerverifiedShow Answer

_________________ are costs imposed on third parties.

Correct AnswerverifiedShow Answer

The acquired skills and knowledge that make people more productive is

Correct AnswerverifiedShow Answer

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C

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Governments allocate large budgets to education at K-12 and university levels because _ and to ___.

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A

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B

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