In Several Cities Around the Country, Schools Are Paying Cash

question 230

Multiple Choice

In several cities around the country, schools are paying cash awards to students who do well on English and Math tests. This practice highlights the idea of:

• A) pedagogical economics-the continuous assessment of student performance in an effort to maximize student efficiency.
• B) hidden costs-the costs borne by taxpayers in the form of wasteful school spending.
• C) incentives-the rewards and penalties that motivate behavior.
• D) screening theory-the identification of individuals or groups based on various performance measures.

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Definitions:

Cash Dividends

Payments made by a company to its shareholders out of its profits or reserves.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, indicating financial health and liquidity.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.