Which of the Following Statements Is True

question 31

Multiple Choice

Which of the following statements is true?

• A) As class size increases, academic achievement decreases.
• B) As class size increases, academic achievement increases.
• C) As school size increases, academic achievement increases.
• D) As school size increases, academic achievement decreases.

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Definitions:

Supply-Side Market Failures

Overallocations of resources that occur when private supply curves understate the full cost of producing a good or service.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity that suppliers are willing to offer for sale at that price.

Willingness To Pay

The maximum price at which a consumer is prepared to buy a good or service, reflecting the value they place on it.