Microeconomics Special Topic 8—Education: Problems and Performance
MULTIPLE CHOICE
1. Between 1970 and 2009, the achievement scores of American students ____, and real spending per
student in American public elementary and secondary schools ____.
a.
rose; fell
b.
rose; rose
c.
fell; rose
d.
fell; fell
2. Compared to a system based on customer choice and competition, the current structure of the
educational system tends to ____ education costs and ____ the quality of education.
a.
lower; lower
b.
lower; raise
c.
raise; lower
d.
raise; raise
3. A school voucher program targeted towards low- and middle-income families would cause
a.
racial and economic segregation among schools to fall.
b.
per-pupil funding in the public schools to fall.
c.
salaries for outstanding teachers to fall.
d.
competition among schools to fall.
4. When the government both provides education and covers its costs through taxation, economic
analysis indicates that
a.
the government-operated schools can be expected to supply a high quality education at a
low cost.
b.
parents will be in a strong position to discipline poorly performing schools and make sure
that the school their child attends is providing quality schooling.
c.
public school administrators can be expected to care more about pleasing parents than
about pleasing government officials and teachers’ unions.
d.
the parent/consumer will be in a weak position to make choices that will assure that their
child receives a quality education at an economical cost.
5. The parents of children in charter schools are
a.
mostly white and almost exclusively high-income recipients.
b.
less satisfied with their children’s schools than are parents of children in traditional public
schools.
c.
about equally satisfied with their children’s schools as are parents of children in traditional
public schools.
d.
more satisfied with their children’s schools than are parents of children in traditional
public schools.
6. Which of the following is true?
a.
The current achievement scores of American students are lower than during the late 1960s.
b.
Real spending per student in American public elementary and secondary schools has
changed little since the 1960s.
c.
The achievement scores of American students are higher than those of students in most
developed countries.
d.
Real spending per student in American public elementary and secondary schools has
declined since the 1960s.
7. Between the late 1960s and 2009, the achievement scores of American students
a.
fell.
b.
did not change.
c.
rose slightly.
d.
rose substantially.
8. Which of the following is true?
a.
Real spending per student in American public elementary and secondary schools has fallen
since 1970.
b.
Spending per student in American public elementary schools is lower than that of most
developed countries.
c.
The achievement scores of American students are lower than those of students in most
developed countries.
d.
The achievement scores of American students have risen since the late 1960s.
9. Which of the following is true?
a.
Real spending per student in American public elementary and secondary schools has fallen
significantly since 1970.
b.
Spending per student in American public elementary and secondary schools is higher than
that of most developed countries.
c.
The achievement scores of American students are higher than those of students in most
developed countries.
d.
The achievement scores of American students have risen since the late 1960s.
10. The achievement scores of American students are ____ than those of students in most developed
countries and the achievement scores of American students have ____ since the late 1960s.
a.
higher; fallen
b.
higher; risen
c.
lower; risen
d.
lower; fallen
11. The achievement scores of American students are ____ than those of students in most developed
countries, and spending per elementary student in the United States is ____ than that of most
developed countries.
a.
higher; less
b.
higher; greater
c.
lower; greater
d.
lower; less
12. Spending per student in American public elementary schools is ____ than that of most developed
countries.
a.
substantially less
b.
slightly less
c.
slightly more
d.
substantially more
13. Spending per elementary student in the United States is ____ than that of most developed countries,
and real spending per student in American public elementary and secondary schools has ____ between
1970 and 2009.
a.
greater; fallen
b.
greater; risen
c.
less; risen
d.
less; fallen
14. When a good or service is supplied under competitive conditions, economic analysis indicates that
with the passage of time, the quality of the product will
a.
tend to improve, but its real price will generally rise.
b.
tend to improve, and its real price will generally fall.
c.
decline, and its real price will generally rise.
d.
decline, and its real price will fall.
15. Public elementary and secondary school administrators have a strong incentive to
a.
attempt to increase their funding levels.
b.
be efficient since their budgets are determined by politicians.
c.
cater to the preferences of students and parents.
d.
do all of the above.
16. Increasing competition between schools will tend to
a.
increase their cost.
b.
decrease their cost.
c.
decrease their quality.
d.
do both b and c.
17. Which of the following is true?
a.
Public school administrators have strong economic incentives to operate efficiently.
b.
Increasing the competition between public and private schools tends to lower both the cost
and quality of schools.
c.
Competition between public and private schools is relatively low at the elementary and
secondary level.
d.
Competition among schools is less intense at the college level than is the case at the
elementary and secondary level.
18. Compared to U.S. elementary and secondary schools, the international standing of U.S. colleges and
universities is
a.
much lower.
b.
slightly lower.
c.
virtually the same.
d.
much higher.
19. Which of the following has been raised as a criticism of school voucher programs?
a.
The primary beneficiaries of voucher programs would be low-income families since they
can now send their children to private schools.
b.
Voucher programs would cause salaries for outstanding teachers to fall.
c.
Funding for public schools would decline, which would cause their quality to deteriorate.
d.
Voucher programs would cause the level of competition between public and private
schools to fall.
20. A school voucher program targeted towards low- and middle-income families would cause
a.
racial and economic segregation among schools to fall.
b.
per-pupil funding in the public schools to fall.
c.
salaries for outstanding teachers to fall.
d.
competition between public and private schools to fall.
21. A school voucher program targeted towards low- and middle-income families would cause
a.
racial and economic segregation among schools to rise.
b.
per-pupil funding in the public schools to fall.
c.
salaries for outstanding teachers to rise.
d.
competition between public and private schools to fall.
22. Which of the following is true?
a.
A school voucher program targeted towards low- and middle-income families would cause
an increase in the degree of racial and economic segregation among schools.
b.
Charter schools are often operated by religious organizations.
c.
An expansion in school voucher programs would tend to increase the salaries of excellent
teachers.
d.
School voucher programs would reduce the degree of competition between public and
private schools.
23. During the 2009-2010 school year, how many students attended charter schools?
a.
250,000
b.
700,000
c.
1,100,000
d.
1,600,000
24. In 2010, how many states permitted public school choice in some or all school districts?
a.
10
b.
30
c.
40
d.
45
25. Which of the following is true of charter schools and voucher programs?
a.
The students in these programs have clearly registered larger improvements in
achievement scores than similar students in regular public schools.
b.
As these programs have expanded, there has been a decline in the real expenditures per
student in regular public schools.
c.
As these programs have expanded, the unionization of teachers has increased because of
the more intense competition in the education industry.
d.
Parents with children in these programs report a higher degree of satisfaction with their
schools than parents in regular public schools.
26. Which of the following will most clearly increase the competitiveness among schools and expand the
educational options available to students and parents?
a.
Charter schools and voucher programs.
b.
An increase in public school expenditures per pupil.
c.
Requirements that public school teachers take more education classes.
d.
Regulations mandating limits on the number of students per class.
27. School voucher programs
a.
make it possible for a broader range of consumers to obtain education more consistent
with their preferences.
b.
are strongly supported by teachers unions because they increase the demand for and
earnings of quality teachers.
c.
are strongly opposed by parents because they are pretty much satisfied with the quality of
the schools currently available.
d.
reduce the educational options available to students and parents.
28. Which of the following is true?
a.
The achievement scores of African-American students tend to be higher after one to two
years in voucher programs.
b.
Most parents of students in charter schools and voucher programs indicate they are
dissatisfied with their children’s schools.
c.
Voucher programs targeted at low– and middle-income families tend to increase racial
segregation in schools in highly segregated communities.
d.
Achievement scores of students in charter schools are much higher than those of students
in traditional public schools.
29. Recent studies indicate that the achievement scores of
a.
students in charter schools are much higher than those of students in traditional public
schools.
b.
African-American students tend to be higher after one to two years in voucher programs.
c.
students in charter schools are stable over time.
d.
students in charter schools are lower after two to four years.
30. Which of the following is true?
a.
The impact of charter schools on student achievement is inconclusive.
b.
Most parents of students in charter schools indicate they are dissatisfied with their
children’s schools.
c.
Charter schools are more racially segregated than traditional public schools.
d.
Charter schools tend to reduce the level of competition between schools.
31. Which of the following is true?
a.
The achievement scores of African-American students tend to be lower after one to two
years in voucher programs.
b.
Most parents of students in charter schools and voucher programs indicate they are
dissatisfied with their children’s schools.
c.
Voucher programs targeted at low– and middle-income families will tend to decrease
racial integration in highly segregated communities.
d.
The impact of charter schools on student achievement is inconclusive.
32. Which of the following is true regarding the average achievement (SAT) scores of high school
graduates in the United States?
a.
The average achievement (SAT) scores of high school graduates fell during the 1970s.
b.
The average achievement (SAT) scores of high school graduates is lower today than it was
35 years ago.
c.
The average achievement (SAT) scores of high school graduates rose slightly during the
1990s.
d.
All of the above are true.
33. When compared to the achievement scores of students in other nations, U.S. students are
a.
well-below average.
b.
well-above average.
c.
about average.
d.
above average in mathematics, but below average in science.
34. After correcting for inflation, spending per pupil in public elementary and secondary schools in the
United States over the last three decades has
a.
more than doubled.
b.
fallen dramatically.
c.
remained roughly constant.
d.
increased, but only slightly.
35. In 2005, average spending per pupil in public elementary and secondary schools in the United States
was approximately
a.
$4,585.
b.
$6,585.
c.
$8,585.
d.
$10,585.
36. Relative to other countries, U.S. spending per pupil for public elementary and secondary education is
a.
among the lowest in the world.
b.
roughly average when compared with other countries.
c.
among the highest in the world.
d.
higher than in most other developed countries but less than in developing countries.
37. Spending per pupil is higher in the United States than in
a.
Japan.
b.
Australia.
c.
Belgium.
d.
all of the above.
38. If elementary and secondary schooling were produced entirely by private firms and purchased by
parents with their own money,
a.
parents would have a strong incentive to search out those schools offering their children
the best education at the best value.
b.
schools would better cater to the desires of parents and supply education more efficiently.
c.
schools would face much stronger competition from one another that would tend to
increase the quality of schooling.
d.
all of the above would occur.
39. When the government both provides education and covers its costs through taxation,
a.
public schools have a strong incentive to supply a high quality education at a low cost.
b.
parents are in a weak position to either discipline poorly performing schools or alter the
quantity or quality of schooling provided.
c.
competition between schools is greatly enhanced relative to a system of privately
produced and funded education.
d.
public school administrators are driven to care more about pleasing parents than about
pleasing teachers’ unions.
40. The incentive of schools to provide a high quality education at a low cost and the incentive of parents
and students to shop around for the best schools will be weakest when education is produced
a.
privately but paid for by taxpayers and provided free of charge.
b.
by public schools and the cost of education is covered by taxes.
c.
privately and parents must purchase it with their own money.
d.
by public schools and parents purchase it with their own money.
41. In the U.S. higher educational system, students and parents have choices as to which college or
university the student attends and generally must finance part of it from personal funds. As a result of
this different incentive structure, the U.S. higher educational system is
a.
one of the best in the world.
b.
one of the worst in the world.
c.
about average when compared to other higher educational systems.
d.
relatively worse in international rankings than U.S. elementary and secondary education.
42. Which of the following is true about a voucher system?
a.
A voucher system is one in which parents receive a certificate equal to the current value of
educational expenditures per pupil at their school, and the parents may then use this
voucher to finance their child’s education at any school (public or private) of their choice.
b.
Under a voucher system, competition would be greatly increased among schools as they
compete for students.
c.
Under a voucher system, the quality of teachers and the diversity of school program
offerings would increase.
d.
All of the above are true.
43. In contrast to schools in a voucher system, charter schools are
a.
not allowed to be religious schools.
b.
not allowed to charge tuition.
c.
not exempt from a variety of standards including financial, safety, and educational
outcomes.
d.
All of the above apply to charter schools.
44. During the 2008-2009 school year, approximately how many students attended a charter school?
a.
100,000
b.
600,000
c.
1,400,000
d.
2,100,000
45. In 2008, how many states permitted public school choice in some or all school districts?
a.
25
b.
30
c.
35
d.
40
46. Which of the following is true?
a.
The achievement scores of African-American students tend to be higher after one or two
years in voucher programs.
b.
Most parents of students in charter schools and voucher programs indicate they are highly
satisfied with their children’s schools.
c.
Targeted voucher programs tend to decrease racial segregation in schools in highly
segregated communities.
d.
All of the above are true.
47. Which of the following is true with regard to the lower achievement scores of American students
compared to students in most developed countries?
a.
Teacher salaries in the United States are not as high as in most other developed countries.
b.
Spending per elementary student in the U.S. is less than that of most developed countries.
c.
There is no obvious link between expenditures on education and student performance on
standardized tests.
d.
American students are not as smart as they were a generation ago.
48. Since 1970, real spending per student in American public elementary schools has
a.
fallen substantially.
b.
fallen modestly.
c.
not changed.
d.
doubled
49. Competition between public and private schools is ____ at the college level than at the elementary and
secondary level.
a.
weaker
b.
of similar intensity
c.
stronger
d.
less important
50. Which of the following factors helps explain why public school administrators have little economic
incentive to operate efficiently?
a.
Public schools have substantial monopoly power.
b.
The funding levels for public schools are determined by politicians rather than directly by
consumers.
c.
It is expensive for consumers to switch from a public to a private school.
d.
All of the above are true.
51. Charter schools are
a.
privately funded schools
b.
typically religious schools
c.
non-traditional schools funded and operated by the government
d.
government operated schools that compete with private schools by charging tuition and
providing competitive services.
52. Which of the following is true?
a.
A school voucher program targeted towards low- and middle-income families would cause
racial and economic segregation among schools to rise.
b.
In contrast with other public schools, charter schools are generally operated by religious
organizations.
c.
School voucher programs increase the salaries of excellent teachers.
d.
School voucher programs decrease the diversity of schooling options.
53. Voucher programs appear to ____ the achievement scores of African-American students after one to
two years in the program and they tend to ____ racial integration in highly segregated communities.
a.
decrease; decrease
b.
decrease; increase
c.
increase; decrease
d.
increase; increase
54. The combined SAT scores of American students is
a.
higher today than 40 years ago.
b.
approximately the same as 40 years ago.
c.
significantly lower than in 1970.
d.
rising rapidly due to improved educational surroundings and technology.
55. What best explains why so many children attend public schools, instead of private schools?\
a.
Public schools provide a significantly better education, as measured by SAT scores.
b.
Public schools have nicer facilities and better sports programs.
c.
When a student attends a public school they do not have to pay tuition.
d.
Private schools have catered only to the wealthy and therefore ordinary Americans would
not be welcome in private schools.
56. What is a major objection that is usually raised against a voucher system?
a.
Students attending private schools tend to outperform their public school counterparts on
standardized tests.
b.
Voucher programs would primarily benefit low-income families.
c.
Voucher programs will create a more heterogeneous student population.
d.
Voucher programs would drain funds away from the public schools, and thereby cause
their quality to decrease.
ESSAY
57. “Increasing competition between schools will tend to lower both the cost and quality of education.” Is
this statement true or false?
58. What are some of the criticisms of voucher programs? How would a voucher program be modified to
address these concerns?
59. What are charter schools? How do they differ from voucher programs?
60. What does the evidence suggest regarding the effects of school choice programs?