How has the financing of elementary and secondary education ...

[HCHenry]

How has the financing of elementary and secondary education changed in the United States since 1940? What is the primary reason for this trend?
 
  What will be an ideal response?

Question 2

In the absence of any government regulation on price, if a firm has no power to set price on its own, one can safely conclude
 
  A) the demand curve for the firm's product is horizontal.
  B) there aren't many firms in the industry.
  C) the market is in long-run equilibrium.
  D) the firms in this industry are not profitable.

[Silverbeard98]

Answer to Question 1

Historically, elementary and secondary education in the United States was a local enterprise. This meant school financing was traditionally financed mostly at the local level. In 1940, for example, nearly 70 percent of financing for elementary and secondary education came from local sources. By 2000, that figure had declined to just over 40 percent with increases in state government funding making up most of the difference. The primary reason for the increase in state (and to some extent federal) funding has been the attempt to equalize funding across school districts. Since local school districts differ in the property tax bases available to them, more state funding allows more aid to be targeted to poor school districts.

Answer to Question 2

A

[HCHenry]

TYSM

[essyface1]

Excellent