James Coleman's Study of U

question 17

Multiple Choice

James Coleman's study of U.S. public schools reported that the most important variable affecting student achievement was

• A)expenditure per student.
• B)class size.
• C)the socioeconomic background of the child's family.
• D)the teacher's level of graduate study.

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Definitions:

Moral Hazard

A situation where one party is more likely to take risks because another party bears the cost of those risks.

Agent

A person who is performing an act for another person, called the principal

Principal

A person for whom another person, called the agent, is performing some act.

Asymmetric Information

A condition in which one party in a transaction has more or superior information compared to another, potentially leading to an imbalance in the transaction.