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How much is a college education worth? In the text, we supposed a col- lege education raised a person’s wage by $30,000 per year, from $40,000 to $70,000. Assume the interest rate is 3% and there is no growth in wages, then answer the following.
(a) Suppose you are a high school senior deciding whether or not to go to college. What is the present discounted value of your labor income if you forgo college and start work immediately?
(b) As an alternative, you could pay $20,000 per year in college tuition, attend for 4 years, and then earn $70,000 per year after you graduate. What is the present discounted value of your labor earnings under this plan? (Compute this value from the point of view of a high school senior.)
(c) Discuss the economic value of a college education.
In an effort to help recover some financial losses due to the economic crisis of the Great Recession, Bank of America announced a $ 5 monthly debit card fee it was planning to impose on consumers. This plan spurred great opposition from Bank of Ameri..
In 2011 the US trucking industry faced the following economic conditions: (i) At last the US economy was recovering from a prolonged slump during which trucking had shrunk its capacity by 14%,
Movie theaters often charge different ticket prices for different times of shows; so is the movie theatre a monopoly that practices discrimination? What about the concession stand inside the theater?
How can managers deal with these problems? If a US corporate headquarters asks a manager to offer kickbacks or other bribes, what are the options?
Provide a general overview of U. S. international trade regarding our trade deficit, trade surplus, primary export goods, status with Canada and China, and the U. S. status in the world.
The Circular Flow Model with Government is another important model for students to understand. Please explain what the model shows us. List and explain the assumptions of the model. i. There are 3 assumptions of the Circular Flow Model with Governmen..
What is the total amount of final goods and services that firms in a country plant reproduce depending on the labor Capital technology natural resources and entrepreneurial talent in the market?
Assume that the average firm in your company's industry is expected to grow at a constant growth of 6% and its dividend yield is 7%. Your company is as risky as the average firm in the industry. what is the estimated value per share of the firm's sto..
Consider a group of 10 friends who are considering going on a road trip (is that still a thing you kids do these days, or do you just sit around and look computers?). In determining whether or not to go, each friend considers both how much they would..
Use the AS/AD model to describe the effect of each of the following events on the economy of Snezhanka (a fictitious nation). Beginning with the economy in equilibrium carefully show the shift involved and the new equilibrium. Let’s consider the effe..
1. In the connection of data preparing, PC security and trusted frameworks, clarify what is implied by the accompanying terms and why we need to utilize them:
Explain the effects of a tax on consumer and producer surplus. Explain what happens to total welfare when government levies a per-unit tax on a good. Use the concept of deadweight loss in your explanation.
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