The Privately-Owned School System in Smalltown Has a Virtually Unlimited

question 198

Multiple Choice

The privately-owned school system in Smalltown has a virtually unlimited capacity. It accepts all applicants and operates on both tuition and private donations. Although every resident places value on having an educated community, the school's revenues have suffered lately due to a large decline in private donations from the elderly population. Since the benefit that each citizen receives from having an educated community is a public good, which of the following would not be correct?

• A)The free-rider problem causes the private market to undersupply education to the community.
• B)The government can potentially help the market reach a socially optimal level of education.
• C)A tax increase to pay for education could potentially make the community better off.
• D)The private market is the best way to supply education.

---

Definitions:

Statutory Rape

is a criminal offense involving sexual activity with a person who is below the legal age of consent, as defined by statute.

Internet Enticement

The act of using the internet to lure or seduce someone into an illegal act, often pertaining to sexual offenses against minors.

Undercover

Operation or activity in which someone secretly gathers information or carries out tasks, often by assuming a false identity.

Arrested

The act of being taken into police custody, often as part of the criminal justice process due to suspicion of having committed a crime.