An Efficiency Argument for Public Provision of Basic Education Is

question 105

Multiple Choice

An efficiency argument for public provision of basic education is that

• A)many poor families could not afford to educate their children if they had to pay for it themselves.
• B)society as a whole benefits when all of its citizens have the basic skills and knowledge acquired from kindergarten to grade 12.
• C)the government is best able to assess the level of provision for which marginal cost equals marginal benefit.
• D)the government can best provide education up to that point where marginal benefit is zero.
• E)education cannot be efficiently provided by private firms.

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Definitions:

Doctor

A professional who practices medicine, which is concerned with promoting, maintaining, or restoring health through the study, diagnosis, prognosis, and treatment of disease, injury, and other physical and mental impairments.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with elasticity greater indicating a more sensitive change.

Availability of Substitutes

A measure of the presence and desirability of alternative products or services that consumers can choose over the current one.

Price-elastic

Descriptive of a product or service for which demand significantly increases or decreases as the price changes.