When a Talented Student from a Poor Family Is Unable

question 6

Multiple Choice

When a talented student from a poor family is unable to receive a loan because she has no collateral,this _________ can be addressed by __________.

• A) government failure; the privatization of education
• B) government failure; the abolition of the federal Department of Education
• C) credit market failure; the privatization of education
• D) credit market failure; government intervention

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Definitions:

User Cost

The cost of using a good or service, including the opportunity cost of forgone alternatives and the depreciation of the good's own value over time.

Government Regulation

The imposition of laws and rules by government aimed at affecting the behavior of individuals and industries to achieve societal goals.

Extraction Cost

The cost associated with the removal of raw materials from the earth, which can influence the price of goods.

Property Rights

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