Should you stay in school beyond the current semester? Describe how you might use the neoclassical theory of investment to help you decide
What will be an ideal response?
Additional schooling makes sense, if the expected marginal benefit is at least as large as the user cost. If I am close to graduation, and "diploma capital" contributes much to my expected income and/or valued competencies, the additional investment may be warranted. Even if graduation is a distant (or irrelevant) goal, the human capital I've acquired this semester might enhance the expected benefit of further schooling. I know the explicit and implicit costs of an additional semester, but will the knowledge I might acquire increase in value over time, or depreciate?
You might also like to view...
If there is an excess supply of money
A) individuals sell bonds, causing the interest rate to rise. B) individuals sell bonds, causing the interest rate to fall. C) individuals buy bonds, causing interest rates to fall. D) individuals buy bonds, causing interest rates to rise.
The Federal Reserve has been quite successful in keeping the inflation rate low for the past 20 years
a. True b. False
In a free market, the quantity demanded will not exceed the quantity supplied of a resource, even if it is undergoing rapid depletion.
Answer the following statement true (T) or false (F)
The country of Northland produced $1,000 billion of output in one year. The population of Northland was 50 million, of whom 30 million were employed. What was average labor productivity in Northland?
A. $33,333 B. $20 C. $20,000 D. $33