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57 Cards in this Set

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Money corrected for inflation; used to compare dollars from then and now.
Constant Dollars
Gas in 1981 was $1.42 per gallon, adjusted for inflation that would be $3.04 today. This is an example of what?
Constant Dollars
Actual amount of dollars.
Current Dollars
The institution that gets the most federal dollars for research.
John Hopkins
The actual cost of something plus the cost foregone in favor of the alternative choice made.
Opportunity Cost
Weighing the costs, both actual and opportunity, with benefit for higher education, the benefit is usually considered a future benefit.
Cost-Benfit Analysis
The relationship between the quantity of a good that is demanded and its price. It involves both the desire and the ability to pay for the good.
Demand
Price and Quantity relationship in the Demand Curve.
The Price goes up the Demand goes down
The amount of a product a seller would like to sell at a given price. The higher the price the higher the supply or willingness to sell.
Supply
Relationship of price, quantity, and demand on the Supply Curve.
Higher the price the higher the quantity, but the lower the demand
The price where the supply and demand equal each other.
Equilibrium Price or Market Price
A law that sets the prices below the market price or equilibrium.
Price Ceiling
Rent control is an example of this.
Price Ceiling
Setting Price ceilings causes this because the demand far exceeds the supply.
Shortage
A law that sets prices above the market price or equilibrium.
Price Floor
The result of a Price Floor is a what; due to the supply exceeding the demand.
Surplus
Minimum wage laws and Farm subsidies are example of this.
Price Floor
Refers to obtaining a product regardless of the what the price is.
Demand Inelasticity with respect to price
Refers to obtaining a good, but making a choice based on the price; example would be going to college but choosing based on cost.
Demand Elasticity based on Price
This type of demand deals with attendance.
Inelastic
This type of demand deals with where to attend college.
Elastic
I am going to college regardless of costs is an example of this type of Demand.
Inelastic
I am going to college at ICC versus Ole Miss is a type of this Demand.
Elastic
This type of cost tends not to change much; rent, electricity, insurance etc.
Fixed Costs
This type of cost can change; faculty and staff costs, and equipment.
Variable Costs
Fixed costs plus the Variable costs equal what? (fc + vc = )
Total Costs
This is the cost for each student added over the base costs (salaries, etc.)
Marginal Costs
What are the goals of all educational institutions?
1. Excellence
2. Prestiege
3. Influence
The Laws of Cost from Bowen.
1. Goals of education are excellence, prestiege, and influence.
2. No limit on the amount of money to spend on the above.
3. Institutions raise as much money as possible.
4. Institutions spends as much as they can.
5. The first four create ever increasing expenditures
Sources of financing for Public institutions.
Tuition, Taxes, Alumni, legislature, endowments, research grants
Money corrected for inflation; used to compare dollars from then and now.
Constant Dollars
Gas in 1981 was $1.42 per gallon, adjusted for inflation that would be $3.04 today. This is an example of what?
Constant Dollars
Actual amount of dollars.
Current Dollars
The institution that gets the most federal dollars for research.
John Hopkins
The actual cost of something plus the cost foregone in favor of the alternative choice made.
Opportunity Cost
Weighing the costs, both actual and opportunity, with benefit for higher education, the benefit is usually considered a future benefit.
Cost-Benfit Analysis
The relationship between the quantity of a good that is demanded and its price. It involves both the desire and the ability to pay for the good.
Demand
Price and Quantity relationship in the Demand Curve.
The Price goes up the Demand goes down
The amount of a product a seller would like to sell at a given price. The higher the price the higher the supply or willingness to sell.
Supply
Relationship of price, quantity, and demand on the Supply Curve.
Higher the price the higher the quantity, but the lower the demand
The price where the supply and demand equal each other.
Equilibrium Price or Market Price
A law that sets the prices below the market price or equilibrium.
Price Ceiling
Rent control is an example of this.
Price Ceiling
Setting Price ceilings causes this because the demand far exceeds the supply.
Shortage
A law that sets prices above the market price or equilibrium.
Price Floor
Sources of financing for Private institutions.
Tuition, alumni, endowments, private and religious support
Two means of setting tuition on states.
Precedent and incremental
Means of setting tuition based on increases by the rate of inflation.
Precedent
Means of setting tuition based on increases by the rate of inflation plus an extra 3 to 4%.
Incremental
The 3 types of financial aid grants.
1. flat based
2. need based
3. income based
Type of financial aid in which everyone receives some aid.
Flat Based
Type of financial aid considering the income and cost of the institution.
Need Based
Type of financial aid Based solely on income.
Income Based
Which fits most public institutions; high tuition/high need or low tuition/low need.
Low/Low
Schools K-12 are an example of high/high or low/low?
Low/Low
What are the two main aspects of States (goals) when dealing with education financing?
1. access (everyone should be able to attend.
2. Balancing the Budget (must)
Five main types of State funding decisions for education.
1. Formula Funding in General
2. Marginal Cost Funding
3. Performance Funding
4. Program Funding
5. Core Funding