Economics of education: cost–benefit vs cost–effectiveness analysis, economic returns to higher education, signalling vs human capital theory, educational finance at micro and macro levels, budgeting concepts. - Question Bank
1. A 'balanced budget' in educational finance means:
2. When comparing the costs of two different pedagogical methods designed to improve critical thinking skills, which analysis is most suitable?
3. The concept of 'economic returns to education' is most directly associated with:
4. In the context of educational finance, 'user fees' or 'tuition fees' represent:
5. Which theory suggests that education's primary role is to transmit societal norms and values, rather than solely impart economic skills?
6. If the goal is to maximize the number of students achieving a basic literacy level within a fixed budget, which analysis is most appropriate?
7. The primary difference between Cost-Benefit Analysis and Cost-Effectiveness Analysis lies in:
8. A 'needs-based funding' model for schools typically allocates resources based on:
9. Which concept is central to understanding the 'economic returns' of education, representing the income forgone by choosing to study instead of work?
10. The economic argument for public funding of higher education often rests on:
11. In educational finance, a 'line-item budget' typically details:
12. Which economic perspective views education as a consumption good that enhances personal development and quality of life, rather than solely as an investment?
13. When a government decides to increase funding for early childhood education with the goal of reducing future crime rates and increasing future tax revenues, it is implicitly performing:
14. The 'internal rate of return' (IRR) for an investment in education is the discount rate at which:
15. A 'performance budget' in education links funding to:
16. Which of the following is a limitation of Signalling Theory?
17. According to Human Capital Theory, investments in education are analogous to:
18. The concept of 'educational finance at micro levels' includes:
19. Cost-effectiveness analysis is particularly useful for comparing:
20. A key assumption in many cost-benefit analyses of education is that:
21. Which level of educational finance deals with the economic impact of education on GDP, national skill formation, and international competitiveness?
22. The 'signalling' aspect of education suggests that employers use degrees to:
23. Which budgeting approach requires managers to justify all requested funding for their unit or department, starting from a 'zero base'?
24. Human Capital Theory emphasizes education's role in:
25. The 'benefit-cost ratio' (BCR) in CBA is calculated as:
26. In the context of educational finance, 'capitation funding' refers to:
27. Which of the following is a potential 'social cost' of higher education?
28. The 'social rate of return' to education considers:
29. A 'program budget' in educational finance typically:
30. Which theory suggests that educational credentials act as a filter, sorting individuals into different positions in the labour market based on their perceived ability?
31. The 'discount rate' in cost-benefit analysis is used to:
32. Which of the following represents a 'private cost' of higher education?
33. A primary critique of Human Capital Theory is that it may overlook:
34. Educational finance at the macro level is concerned with the allocation of resources within:
35. The 'internal rate of return' (IRR) is a concept used in:
36. When comparing two educational programs aimed at improving literacy, where the desired outcome (improved literacy) is the same, which analysis is more appropriate?
37. Zero-Based Budgeting (ZBB) requires that:
38. A 'budgeting concept' relevant to educational finance is:
39. According to Signalling Theory, a university degree's primary economic value lies in:
40. Which of the following is an example of a 'social benefit' of education often considered in cost-benefit analysis?
41. The concept of 'opportunity cost' in the context of education refers to:
42. Macro-level educational finance focuses on:
43. At the micro level, educational finance typically deals with:
44. Which of the following is a key challenge in conducting a cost-benefit analysis of education?
45. Human Capital Theory, as applied to education, suggests that education:
46. The 'economic returns to higher education' typically refer to:
47. Cost-effectiveness analysis (CEA) is most useful when:
48. Cost-benefit analysis (CBA) primarily compares:
49. Which economic theory posits that education primarily serves to signal an individual's inherent ability and productivity to potential employers?