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. 1. [5 pts] Suppose that the U.S. Congress is debating whether...
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1. [5 pts] Suppose that the U.S. Congress is debating whether to end the Temporary Assistance to Needy Families
(TANF) program and instead let local governments replace this program with their own programs. Which approach would be more efficient? Explain. 2. [5 pts] Explaining briefly what effects the following grant schemes generate and draw a graph to illustrate: a. block grant
b. conditional block grant c. matching grant 3. [5 pts] By mandating school till age 16 the government is using which mechanism to increase education? Explain. 4. [15 pts] Consider the following scenarios. What is the underlying argument for government intervention in the education market and what kind of mechanism is being proposed?
a. A politician claims that government should intervene in the education market to "even the playing field" for rich and poor families. b. A politician states that areas in which the population is poorly educated have more break-ins than
other areas and that consequently the government should intervene in the education market. c. A politician asserts that he wants to increase income mobility and government should intervene.
Answer & Explanation
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