Assume for the Moment That the Student-Teacher Ratio Effect on Test

question 31

Essay

Assume for the moment that the student-teacher ratio effect on test scores was large enough that you would advocate reducing class sizes in elementary schools. In 1996, the State of California reduced class sizes from K-3 to no more than 20 students across all public elementary schools (Class Size Reduction Act)at a cost of approximately $2 billion. In a short essay, discuss why the general equilibrium effects might differ from the results obtained using experiments.

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Definitions:

Significant Barriers

Obstacles that significantly hinder entry into a market or industry, including legal restrictions, high start-up costs, and substantial economic and technological challenges.

Oligopolistic Firm

A company that operates in a market structure characterized by a small number of firms that have significant market control, leading to limited competition.

Pricing Decisions

The process of determining what price to charge for a product or service, considering costs, market demand, and competition.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to an efficient allocation of resources.