Econ Ch. 10
Terms
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- schools that are financed by tax revenues and operated by the government
- public schools
- schools that are not operated by the government and are mainly financed by student tuition
- private schools
- positive externality in which benefits are shifted from the provate market to society
- spillover benefit
- benefits or costs of an economic activity that spill over to the rest of society
- externalities
- negative externatlity in which costs are shifted from the private market to society
- spillover cost
- value of income, earnings, property, sales, or other variables to which as tax rate is applied
- tax base
- percentage of the tax base that must be paid to the fovernmnet as tax
- tax rate
- pay part of the cost
- subsidize
- income-earning investments of a school
- endowments
- the theory that people invest in education in the same way that businesses invest in machines, by calculating the investment's return, or profit rate
- investment-in-human-capital theory
- profit rate computed by dividing profit by investment
- rate of return
- a maximum limit on the number of students allowed to enroll in a school
- enrollment caps
- monies authorized by a legislative body to be spent for certain purposes
- appropriations