Economic:

Select the correct answer

Question 6

Market failures explaining the need for public financing of education includeall but which of the following:

1- Education creates positive externalities for society though the assimilation of immigrants and socialization of all students.

2- Education is a merit good.

3- Education would always be under-consumed if parents had to finance schools for their children.

4- Education in science can lead to innovation and technology which drive economic productivity

Question 7

By 1997, third parties were paying for approximately what fraction of health care expenditures?

1- 30%

2- 50%

3- 20%

4- 80%

Question 8

Which is not a market failure commonly associated with education?

1. An initial income distribution that makes social mobility important

2. Education's being pure public good

3. Positive externalities

4. Imperfect capital markets

Question 9

Which group of workers is not under compulsory coverage by social security?

1. Domestic workers
2. Farm workers
3. New federal employees
4. State and local government employees.

Question 10

If social security coverage induces a person to retire early, this is an example of

1. social risk
2. moral hazard
3. marginal disadvantage
4. adverse selection