The Privately-Owned School System in Smalltown Has a Virtually Unlimited

question 198

Multiple Choice

The privately-owned school system in Smalltown has a virtually unlimited capacity. It accepts all applicants and operates on both tuition and private donations. Although every resident places value on having an educated community, the school's revenues have suffered lately due to a large decline in private donations from the elderly population. Since the benefit that each citizen receives from having an educated community is a public good, which of the following would not be correct?

• A)The free-rider problem causes the private market to undersupply education to the community.
• B)The government can potentially help the market reach a socially optimal level of education.
• C)A tax increase to pay for education could potentially make the community better off.
• D)The private market is the best way to supply education.

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Definitions:

Bachrach and Baratz

Scholars known for their work in political science, particularly on the second face of power, which involves the ability not just to make decisions but to control the agenda and prevent certain issues from being discussed.

Political Elites

A small group of people who hold significant power and influence in a political system, often shaping policies and decisions.

Economic Valorization

The process of assigning economic value to something, often influencing its perception and importance in society.

Unpaid Labor

Work performed without monetary compensation, often in the context of domestic chores, volunteer activities, or internships.