What Is the Rationale for Government Provision of Education

question 132

Multiple Choice

What is the rationale for government provision of education?

• A)Not all incomes are equal, but everyone has the right to education regardless of wealth.
• B)Potential students consider only their personal benefits gained from education, but the rest of society benefits, too.
• C)No education would be provided in the absence of government provision because everyone would consume it without paying.
• D)The cost of providing education for the entire public is too large.
• E)The government can provide education at a much lower cost than the private sector.

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Definitions:

Net Income

The overall income a company retains following the subtraction of all costs and tax obligations from its earnings.

Net Cash Inflows

The total amount of cash received minus the total amount of cash outflows over a specified period.

Operating Income

Operating income is the profit earned from a firm's normal business operations, excluding non-operating income and expenses like interest and taxes.

Cash Payback Period

The duration it takes for an investment to generate cash flows sufficient to recover the initial investment cost, often used in capital budgeting to assess investment attractiveness.