Quiz 1 Flashcards
(31 cards)
Education is the country’s largest industry? True/False
True: Historically, education has been the larges public
function in the U.S. and the country’s biggest business,
when viewed in terms of the number of people and
dollars of income involved in its operation.
25% of the U.S population is in someway involved in education? True/False
True
Funding for education is an investment in what?
Human Capital
What is human capital?
the knowledge, skills and habits that are
acquired by people over a lifetime.
Theodore Shultz defined human capital as what?
Human capital has the fundamental attributes of the
basic economic concept of capital, namely, it is a
source of future satisfactions, or of future earnings, or
both of them. What makes it human capital is the fact
that it becomes an integral part of a person.
The Virtuous Circle
Human capital essential to create wealth
Increase human capital = more educated workforce
More educated workers = more money
Earning more money = more investment money
Investment benefits everyone!
Public Schools
Funded by the Government through taxes
Since students don’t pay for their education, their education is mostly shaped by government officials.
Private Schools
Funded by companies, individuals, and churches
Have more freedom of rules often different from public schools, and they may be more responsive to consumer demand.
Marx Economic Philosophy
communist
Keynes Economic Philosophy
government intervention
Gailbrath
liberal
Friedman
conservative/libertarian
Smith
capitalist
Marginal Dollar Principle
marginal utility-the pleasure/satisfaction of the consumer.
diminishing marginal utility-the marginal utility depleting with time/use.
marginal dollars-dollars better spent on other goods/services
Point of diminishing returns
additional expenditures yield very little or no additional
returns.
Public Benefits of Education
- More productive labor force
- A healthier society
- More informed electorate
- Increased patronization of arts
- Preservation of culture/identity
Private Benefits of Education
- Range of job opportunities
- Job security
- Life expectancy
- Average earnings increase
- Better Health
- Increased appreciation for arts, culture, and science
Economic Benefits of Education
- More Education = generally more income
- Income rise=income/property tax rise
- So more resources become available for the government to use.
For example, the mean average earnings of a male with a
masters degree are higher than those of a female with a
doctorate.
The mean average earnings of a male with an associates
degree are higher than those of a female with a bachelors
degree.
True/False
True
What is Adequacy?
State finance systems should be designed to
provide all children an equal opportunity to achieve defined
outcomes.
Factors Impacting adequacy
Many factors impact adequacy, including the establishment
of outcome standards, also known as the adequacy target
The publication of A Nation At Risk in the 1980s brought more
attention to education, as it recommended reforms for education
and warned of severe consequences if reforms did not occur
True/False
True
Recent data indicates that the total expenditures for public
and private education from prekindergarten through
graduate school totaled more than $1.25 trillion.
* The average spending per student at public schools in the
K-12 levels was $11,984, though it varies by state.
True/False
True
National Average
11,984
