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Econ 1-23 Economics of Education

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Econ 1-23 Economics of Education

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STANDARD:
E.4.1 Explain how markets underproduce public goods, and analyze the role of government to resolve those market failures.
E.4.2 Describe how the government taxes negative externalities (spillovers) and subsidizes positive externalities to resolve the inefficiencies they cause.
E.4.3 Describe the major revenue and expenditure categories in state and federal budgets and their respective proportions, and the challenges of achieving a balanced budget. (E)
E.4.4 Determine whether different types of taxes (e.g., income tax, sales tax, and Federal Income Contributions Act [FICA] tax including Social Security and Medicare) are progressive, proportional, or regressive. (E)
GE.7.1 Define and explain fiscal policy and its tools. (E)
GE.7.2 Define and explain monetary policy and its tools. (E)
GE.7.3 Analyze how the government uses fiscal policy to promote price stability, full employment, and economic growth.
GE.7.4 Explain how the use of fiscal policy affects budget deficits or surpluses and the national debt.
GE.7.5 Analyze how the Federal Reserve uses monetary policy to promote price stability, full employment, and economic growth. (E)

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Econ 1-23 Economics of Education
 

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Econ 1-23 Economics of EducationOnline version

STANDARD: E.4.1 Explain how markets underproduce public goods, and analyze the role of government to resolve those market failures. E.4.2 Describe how the government taxes negative externalities (spillovers) and subsidizes positive externalities to resolve the inefficiencies they cause. E.4.3 Describe the major revenue and expenditure categories in state and federal budgets and their respective proportions, and the challenges of achieving a balanced budget. (E) E.4.4 Determine whether different types of taxes (e.g., income tax, sales tax, and Federal Income Contributions Act [FICA] tax including Social Security and Medicare) are progressive, proportional, or regressive. (E) GE.7.1 Define and explain fiscal policy and its tools. (E) GE.7.2 Define and explain monetary policy and its tools. (E) GE.7.3 Analyze how the government uses fiscal policy to promote price stability, full employment, and economic growth. GE.7.4 Explain how the use of fiscal policy affects budget deficits or surpluses and the national debt. GE.7.5 Analyze how the Federal Reserve uses monetary policy to promote price stability, full employment, and economic growth. (E)

by Lance Hiles
1

There two theories for why college graduates earn more. One is the ____ ____ theory, the idea that going to college teaches you skills that help you get a higher income job.

  
  
2

If society's goal is ____ ____ , then education is an effective solution. Education benefits the person who receives it as well as society in general.

  
  
3

When you compare people with a college degree to people with less education, you are comparing people from ____ backgrounds to people without [same] backgrounds. College graduates make more money because of college AND because of life circumstances .

4

Higher incomes can be attained by anyone who receives ____ ____ , either through Ivy Tech or through a plumbing internship. Not everyone needs to attend college to make lots of money.

  
  
5

Student who earn college degrees must have intelligence and dedication, must have good grades in primary and secondary school, & usually come from wealthy homes with ____ ____ .

  
  
6

Roughly 50% of college students ____ from college. So you can earn more money in life after attending college, but only if you earn a degree, and only if that degree leads to a high-wage career.

7

The ____ ____ for college grads is lower that for those without a college degree. [same] for college grads is 3%, for high school graduates 5%, & for high school dropouts 8%.

  
  
8

Some colleges ____ for ____ , creating fancy meal plans, housing arrangements, & extracurricular activities. This might explain why students are borrowing more money & why the cost of attending college goes up every year.

  
  
9

The ____ ____ ____ is the idea that people with college degrees earn more money than people without a college degree. College grads earn an average of $17K more than high school grads.

     
  
  
10

Since more students are attending ____ ____ after college, & [same] costs more, this might explain why students are borrowing more money & why the cost of attending college goes up every year.

  
  
11

One way to force schools to improve is by giving their funding to a school that is improving. This creates market competition between schools. Thus, some economists support charter schools and ____ ____ , which allow parents to pick schools

  
  
12

Tuition at ____ ____ is higher than tuition at state universities. This might explain why students are borrowing more money & why the cost of attending college goes up every year.

  
  
13

For some economists, the best way to fix income inequality is to focus on funding. They argue that the government should pay for ____ ____ programs (head start), and provide extra money for low-income students.

  
  
14

Most students should not worry about rising tuition. Only students with affluent parents & low test scores will pay full price. Students with poor parents & high test scores will pay less, thanks to ____ & ____

  
  
15

The U.S. government pays for ____ & ____ public education and subsidizes college. State & federal governments spent 634 billion dollars on [same]. That’s an average of 12,500 dollars per student, per year.

  
  
16

Nearly 3/4th of college students ____ ____ ____ to fund their education, borrowing on average a little less than $30K. Never the less, the number of students attending college increases every year.

     
  
  
17

Education is a ____ ____ . It benefits individuals with jobs & income, but it also benefits society as these individuals create art, invent stuff, cure diseases. More education increases productivity, GDP, and standards of living.

  
  
18

College credentials are signaling your skills, but we could do the same with 5-10 Advanced Placement tests over a couple of days. In addition to skills, college credentials are signaling your ____ ____ background.

  
  
19

Why do governments spend billions funding public education for all students? Why not let businesses & markets handle it? Many argue that if education was ____ , some children would be excluded, and that would make society worse as a whole.

20

There are two theories for why college graduates earn more. One theory is called ____ . When applying for a job, everyone will report being intelligent and dedicated. To detect the liars, college credentials serve as objective verification.

 
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