If the Government Justifies Intervention in Education by Asserting It

question 25

Multiple Choice

If the government justifies intervention in education by asserting it wants to enable income mobility,which justification for intervening is it using?

• A) credit market failure
• B) productivity spillovers
• C) redistribution
• D) to produce a less criminally inclined public

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Definitions:

Budget Line

A line that represents all combinations of goods and services a consumer can purchase with their income at given prices.

Marginal Rate

Generally refers to the rate at which one quantity changes with respect to a change in another, often used in the context of taxes or substitution rates.

Indifference Curve

A visual depiction illustrating various pairings of two products that deliver the same degree of happiness and usefulness to a buyer.

Substitution

The act of replacing one item or factor with another due to factors like cost, preferences, or availability, often affecting consumer choices and market dynamics.