Discuss the economic value of a college education

Assignment Help Microeconomics
Reference no: EM131634363

Question: How much is a college education worth? In the text, we supposed a college 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.

Reference no: EM131634363

Questions Cloud

Client exercises in the center week : A fitness center is interested in the mean amount of time a client exercises in the center each week.
Examining the danish cartoon affair : Explain and critically examine whether media narrations of the ‘Danish Cartoon Crisis' misrepresented Islam.
Express solution set using interval notation : Solve the inequalities for the following exercises. Express solution set using interval notation, and graph the solution set on a number line
What is one way to prepare for building a project budget : Reflect - Answer the following questions about planning projects. What is one way to prepare for building a project budget
Discuss the economic value of a college education : How much is a college education worth? In the text, we supposed a college education raised a person's wage by $30,000 per year, from $40,000 to $70,000.
Percentage of the variation in annual : What percentage of the variation in annual government funding is explained by the regression equation? Give your answer correct to two decimal places.
Solve the problem related to the oil : A positive oil shock: Suppose scientists discover a new way to extract oil from deposits that were previously thought to be unrecoverable.
What is pauls central understanding of jesus in corinthians : What is Paul's central understanding of Jesus in 1 Corinthians? Briefly substantiate your answer with reference to what Paul states in that letter.
Define clarifying symptoms or did it serve to confuse : Did you find the website useful in clarifying symptoms or did it serve to confuse? Why?

Reviews

Write a Review

Microeconomics Questions & Answers

  Short-run labor demand curve

Consider the firms short run decision to hire workers. Suppose that a firm produces goods for sale in the perfectly competitive market. labor markets are competitive as well.

  What will be the price of manisa co.

Suppose that Manisa Co. is currently not paying any dividends, but is is known that starting in four years (i.e. the first payment is four years from now), Manisa will begin paying $2 a share. The interest rate is 4%. In three years time, what..

  Identify and recommend strategies to move the company

Identify and recommend strategies to move the company not only to a position of maintaining current levels of quality and sales, but improving in each of these measures of success.

  Contribution to the evolution of economic thought

Write a six to eight (6-8) page paper in which you:Analyze each economist's unique contribution to the evolution of economic thought. Support your response with at least two (2) examples of each economist's contributions. Summarize the current econom..

  Industry structure-atc curve

Describe and discuss; Use the concepts of economies and diseconomies of scale to describe a firm's long run Average Total Cost Curve.

  Sketch the production possibility curve comparing six hours

draw a production possibility curve comparing the six hours that you have available every evening for studying or

  Can one make a case for giving actual gifts besides money

Several years ago, American Economic Review published a paper in which the author claimed giving gifts at Christmas was "inefficient." Instead of giving gifts, which the receiver might not want, it would be better to give money so that the recipie..

  What assumptions are required for the interval

Find a 95% con?dence interval for the difference between the population means of the FNE scores for bulimic and normal female students. Interpret the result.

  What is the diamonds-water paradox

What impact would an increase in the monthly premium have on their consumer surplus? What would be the impact of a reduction in co-payments?

  Fiscal policies such as the recent pay-roll tax cut

Fiscal policies such as the recent pay-roll tax cut, may result in all of the following, except

  Jennifer spends all her income on two good

Jennifer spends all her income on two goods, X and Y. In Year 1, P X = $15 and PY = $24, and at her utility-maximizing equilibrium she bought 20X and 30Y.

  How to eliminate diminishing returns in production

ntroduction of the Verson Stamping Machine helped firms in the automobile industry: shift their AVC, ATC, and MC curves upward. achieve greater economies of scale. reach their minimum efficient scale at a lower level of production.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd