The figure shows the cost of college for high- and low-productivity workers. Based on the college wage premium: Income 400 (thousands of dollars a year) 300 200 100 Cost low productivity Cost high productivity College 4-year wage premium Years of college O a. neither type of worker will get a four-year degree. O b. high-productivity workers will get a four-year degree. O c. all workers will get a four-year degree. O d. high-productivity workers will choose six years of college.

The figure shows the cost of college for high- and low-productivity workers. Based on the college wage premium: Income 400 (thousands of dollars a year) 300 200 100 Cost low productivity Cost high productivity College 4-year wage premium Years of college O a. neither type of worker will get a four-year degree. O b. high-productivity workers will get a four-year degree. O c. all workers will get a four-year degree. O d. high-productivity workers will choose six years of college.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The figure shows the cost of college for high- and low-productivity workers. Based on the college wage premium:
Income 400
(thousands of
dollars a year)
300-
200
100
Cost low productivity
Cost high
productivity
College 4-year
wage premium
Years of college
O a. neither type of worker will get a four-year degree.
O b. high-productivity workers will get a four-year degree.
O c. all workers will get a four-year degree.
O d. high-productivity workers will choose six years of college.

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