When State and Local Governments Provide Public Schools with a Per-Unit

question 290

Multiple Choice

When state and local governments provide public schools with a per-unit subsidy to provide educational services, the price that the schools providing these services receive is

• A) less than the price that consumers pay to receive educational services.
• B) less than the amount of the per-unit subsidy that the schools receive.
• C) greater than the market clearing price without the subsidy.
• D) equal to zero.

---

Definitions:

Acid-test Ratio

A financial ratio that measures a company's ability to pay off its short-term liabilities with its quick assets, providing insight into its immediate financial health.

Marketable Securities

Financial instruments or securities that are easily convertible into cash within a short period without a significant loss of value.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Inventory Turnover

Inventory Turnover is a ratio that shows how many times a company's inventory is sold and replaced over a period of time, indicating the efficiency of inventory management.