Chapter 7: Deficit Financing and Public Debt*
Multiple Choice
1. Vouchers allow students to
A) get free lunches at public schools.
B) go to public schools at reduced rates.
C) receive discounts on school supplies like pens and paper.
D) all of the above
E) none of the above
Ans: e
2. is the investment that individuals make in education, training, and health care that raise
their productive capacity.
A) Capital market
B) Human capital
C) Human engineering
D) Private good production
Ans: b
3. In 2007 had the highest annual expenditures on public and private schools per student.
A) Spain
B) France
C) United States
D) Japan
Ans: c
4. Publicly provided education is generally considered
A) a public good that generates positive externalities.
B) not to be a public good that generates negative externalities.
C) not to be a public good that generates positive externalities.
D) a public good that generates negative externalities.
Ans: c
5. Reducing class size will
A) improve student test scores.
B) decrease student test scores.
C) have no impact on student test scores.
D) have an undetermined impact on test scores.
Ans: d
6. Charter schools
, A) are public schools.
B) operate under special state government charters.
C) can experiment with a variety of approaches to education.
D) have some independence in making spending and hiring decisions.
E) all of the above.
Ans: e
7. Merit pay for teachers has a on test student test scores.
A) positive
B) negative
C) undetermined
D) none of the above
Ans: c
8. Public provision of education might
A) cause property values to fall.
B) crowd out private provision.
C) decrease local taxes.
D) none of the above.
Ans: b
9. Between 2003 and 2004 real annual expenditure per pupil in public elementary and secondary schools
A) increased by $102.
B) decreased by $701.
C) did not change.
D) increased by $701.
Ans: a
10. The presence of positive externalities justify the current structure of government programs for
higher education.
A) should
B) does
C) should not
D) does not.
Ans: d
11. Some critics have argued that moving children to private schools might reduce the of
education.
A) pure public goods aspect
B) positive externalities
C) size of library holdings
D) size of teachers unions influence
Ans: b
Multiple Choice
1. Vouchers allow students to
A) get free lunches at public schools.
B) go to public schools at reduced rates.
C) receive discounts on school supplies like pens and paper.
D) all of the above
E) none of the above
Ans: e
2. is the investment that individuals make in education, training, and health care that raise
their productive capacity.
A) Capital market
B) Human capital
C) Human engineering
D) Private good production
Ans: b
3. In 2007 had the highest annual expenditures on public and private schools per student.
A) Spain
B) France
C) United States
D) Japan
Ans: c
4. Publicly provided education is generally considered
A) a public good that generates positive externalities.
B) not to be a public good that generates negative externalities.
C) not to be a public good that generates positive externalities.
D) a public good that generates negative externalities.
Ans: c
5. Reducing class size will
A) improve student test scores.
B) decrease student test scores.
C) have no impact on student test scores.
D) have an undetermined impact on test scores.
Ans: d
6. Charter schools
, A) are public schools.
B) operate under special state government charters.
C) can experiment with a variety of approaches to education.
D) have some independence in making spending and hiring decisions.
E) all of the above.
Ans: e
7. Merit pay for teachers has a on test student test scores.
A) positive
B) negative
C) undetermined
D) none of the above
Ans: c
8. Public provision of education might
A) cause property values to fall.
B) crowd out private provision.
C) decrease local taxes.
D) none of the above.
Ans: b
9. Between 2003 and 2004 real annual expenditure per pupil in public elementary and secondary schools
A) increased by $102.
B) decreased by $701.
C) did not change.
D) increased by $701.
Ans: a
10. The presence of positive externalities justify the current structure of government programs for
higher education.
A) should
B) does
C) should not
D) does not.
Ans: d
11. Some critics have argued that moving children to private schools might reduce the of
education.
A) pure public goods aspect
B) positive externalities
C) size of library holdings
D) size of teachers unions influence
Ans: b
