Economics of Social Issues 20th Edition by Ansel Sharp, Charles Register , Paul Grimes

Exercise 2

Suppose the legislature of the state that you live in decides to invest an additional $100 million in K-12 education in hopes of improving student performance. Which of the following ways of spending the money would you expect to be most successful:
a. Dividing the money equally among the schools in the state to increase teacher salaries.
b. Dividing the money equally among the schools in the state to reduce class sizes in all grades.
c. Dividing the money equally among the schools in the state to reduce class sizes in the lower grades.
d. Using the money to reduce class sizes in the lower grades and giving a disproportionate share to schools in the state's poorer areas.