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Issues in Economics Today
Issues in Economics Today
Robert Guell, Indiana State University

Head Start

Multiple Choice Quiz



1

Head Start serves nearly 1 million children who are
A) representative of the general population.
B) physically handicapped.
C) generally poorer than the overall population.
D) exclusively from the inner city.
2

The premise of Head Start was that children in high quality pre-school are eventually
A) more likely to graduate from high school.
B) less likely to end up in prison.
C) less likely to become pregnant as teens.
D) all of these
3

Present value analysis suggests that if the premise of Head Start ( higher graduation rates, lower pregnancy rates etc. ) is valid
A) then the program is, by definition, worth the investment.
B) then the program is still unlikely to be worth the investment.
C) it still must return far more dollars in these better outcomes than was spent on the program originally because the payoffs occur much later than the costs.
D) as long as the dollar benefits from the better outcomes in the future is equal to the dollar costs of the program now.
4

The argument for why the market fails to provide the correct level of pre-school spending for poor children centers on the notion of the ______ of the program.
A) external costs
B) private benefits
C) private costs
D) external benefits
5

The evidence from early studies conducted on the economic value of high quality early childhood education suggested that for every dollar spent ______ would be returned later in higher tax revenues and lower government costs from the increased success of those children.
A) $1.50
B) $5.00
C) $50.00
D) $500.00
6

The early evidence on pre-school suggested that a national Head Start program would
A) be a total waste of money.
B) yield a high rate-of-return and with a significantly positive present value.
C) yield a low rate-of-return with a near-zero present value.
D) pay for itself because parents would pay tuition.
7

The evidence on Head Start suggests that the benefits of the early pre-school on enrollees
A) continues undiminished over their lifetime.
B) continues throughout their lifetime but does diminish as time goes on.
C) doesn't even last into kindergarten.
D) diminishes through the early grades and is unseen past the 3rd grade.
8

Enrollment in the Head Start program
A) is below 100,000.
B) is between 800,000 and 1,000,000.
C) is between 2,000,000 and 3,000,000.
D) is greater than 5,000,000.
9

Inflation-adjusted spending on Head Start
A) has remained flat.
B) has rapidly increased since 1980.
C) has increased since 1980 but by less than 5% over the entire period.
D) has decreased since 1980.
10

The opportunity cost of spending on programs that are not effective includes
A) the benefits that the money could have garnered in another program.
B) the lost opportunity to imagine and test alternative programs that might be effective.
C) neither a) nor b) because the mantra should be "do no harm" and as long as program do no harm they have no opportunity cost.
D) both a) and b)




McGraw-Hill/Irwin