Jennifer has just finished high school and is deciding whether to start working or go to college. She has already been offered a job that pays $35,000 a year. Four years of college will cost $12,000 each year. She would earn an extra $20,000 each year after she graduates for the 45 years she plans on working until she retires. Assume that the interest rate is 8.5%. What is the net present value of the decision to invest in college?
A. $136,877
B. $126,154
C. $12,487
D. $11,508
C. $12,487
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Why will a private market be unable to produce the efficient quantity of public goods?
A) because the good's marginal cost is too low B) because the good is nonexcludable, so there is the free rider problem C) because the good is rival, so no one will want to pay the producer for it D) All of the above answers are correct.
Two reasons why the Social Security system nearly went bankrupt in the early 1980s are: (i) wages were indexed but benefits were not; (ii) the percentage of elderly people in the country declined
a. i and ii b. i but not ii c. ii but not i d. neither i nor ii
The main reason U.S. farmers can produce more than farmers in China is that they
A. have more land. B. have more capital. C. have more labor. D. are better trained.
If economic profits are $100,000 and implicit (or opportunity) costs are $60,000, how much are accounting profits?
What will be an ideal response?