Which of the Following Factors Helps Explain Why Public School

question 337

Multiple Choice

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.

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Definitions:

Government Interference

Actions by the government that affect the market, often with the intention of correcting market failures or achieving a social objective.

Full Employment

A situation where all available labor resources are being utilized in the most economically efficient way, with no involuntary unemployment.

Property Rights

Legal rights to possess, use, and dispose of assets including physical, intellectual, and real property.

Mutually Agreeable Transactions

Exchanges between parties that both sides consent to because they are beneficial.