Question
In: Economics
David is a high school senior. He must decide whether to work or go to college....
David is a high school senior. He must decide whether to work or go to college. If he has a high school degree, he will make $20,000 per year. If he has a college degree, he will make $35,000 per year. To get a college degree, he must go to school for one period at a tuition cost of $10,000. Assume David lives for 3 periods and his discount is 0.1. A. What is David’s direct cost of attending college? What is his opportunity cost? What will he decide to do?
B. Now, assume David can get a full-ride scholarship (thus H = 0). Now what will he do?
C. Since David is receiving a scholarship for his undergrad degree, he is now debating about going to grad school. If he decides to get his PhD, he must go to school in the first period (undergrad) at a cost of $0, and he must go to school in the second period (grad school) at a cost of $0. With a PhD, David can make $77,000 per year. Will David go to grad school? You only need to compare undergrad and grad school.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
David is a high school senior. He must decide whether to work or go to college....
David is a high school senior. He must decide whether to work or
go to college. If he has a high school degree, he will make $20,000
per year. If he has a college degree, he will make $35,000 per
year. To get a college degree, he must go to school for one period
at a tuition cost of $10,000. Assume David lives for 3 periods and
his discount is 0.1.
(a) What is David’s direct cost of attending college?...
David is a high school senior. He must decide whether to work or go to college....
David is a high school senior. He must decide whether to work or
go to college. If he has a high school degree, he will make $20,000
per year. If he has a college degree, he will make $35,000 per
year. To get a college degree, he must go to school for one period
at a tuition cost of $10,000. Assume David lives for 3 periods and
his discount is 0.1.
A. What is David’s direct cost of attending college?...
David is a high school senior. He must decide whether to work or go to college....
David is a high school senior. He must decide whether to work or
go to college. If he has a high school degree, he will make $20,000
per year. If he has a college degree, he will make $35,000 per
year. To get a college degree, he must go to school for one period
at a tuition cost of $10,000. Assume David lives for 3 periods and
his discount is 0.1.
a) What is David’s direct cost of attending college?...
David is entering high school and is determined to save money for college.
Determining future value
David is entering high school and is determined to save money for college. David feels
he can save $5,000 each year for the next four years from his part-time job. If David is
able to invest at 6%, how much will he have when he starts college?
Assume that the following events are independent: The probability that a high school senior will go...
Assume that the following events are independent: The probability
that a high school senior will go to college is 0.70. The
probability that a high school senior will go to college AND live
on campus is 0.48. What is the probability that a high school
senior will live on campus, GIVEN that the person will go to
college?
Pretend that you have been put on a committee at school or college that must decide...
Pretend that you have been put on a committee at school or
college that must decide whether to start random drug testing at
school or college and that students must agree to this in order to
remain enrolled. Using information from the text about marijuana,
alcohol and opioids, briefly describe how each could affect a
student's behavior on campus and also off campus when completing
homework. Then write your own opinion as to why you think this
could be a...
Pretend that you have been put on a committee at school or college that must decide...
Pretend that you have been put on a committee at school or
college that must decide whether to start random drug testing at
school or college and that students must agree to this in order to
remain enrolled. Using information from the text about marijuana,
alcohol and opioids, briefly describe how each could affect a
student's behavior on campus and also off campus when completing
homework. Then write your own opinion as to why you think this
could be a...
The Old School is trying to decide whether it should purchase or lease a new high...
The Old School is trying to decide whether it should purchase or
lease a new high speed photocopier machine. It will cost the school
$14,000 to purchase the copier and $750 each year to maintain the
machine over the course of its 6 year useful life. At the end of
the sixth year, Old School expects to be able to sell the copier
for $1,000. A dealer has offered to lease the school the same
copier for a payment of...
A high school is examining whether or not a certain college admissions test prep course is...
A high school is examining whether or not a certain college
admissions test prep course is helpful. To evaluate this, 15
students took the college admissions test. Afterwards, they went
through the prep course and then took the admissions test again.
Their before and after scores are shown below. With a significance
level of 0.90, is the admissions test prep course effective?
Student Before After
1 27 29
2 28 29
3 30 31
4 32 31
5 16 20...
Assume that the alternative to attending college was to work right after high school. Find the...
Assume that the alternative to attending college was to work
right after high school. Find the average wage of someone with a
high school diploma, but keep in mind that the opportunity costs
include only the income you are losing, so if you currently work
part-time then the opportunity costs = Income working full time –
Income working part-time. Be sure to explicitly state your
assumptions.
What is the Present Values of costs and benefits?
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