Suppose Head Start Proponents Could Show That It Saves $2000

question 25

Multiple Choice

Suppose Head Start proponents could show that it saves $2000 per child in reduced need for special education, $3000 per child in reduced need for children to repeat first or second grade, but that these benefits accrue two to three years after program participation. Suppose there are no other benefits and that the program costs $6000 per child. With this data, you

• A)could not conclude that the program makes sense, because present values depend on the interest rate.
• B)could conclude that the program makes sense as an investment.
• C)would have to concede that the program is not worth the costs.
• D)would insist that Head Start is simply the "right" thing to do for the kids.

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