This diagram shows the age-earnings profiles of three different individuals who opt to choose three options: not graduating from high school, graduating from high school, and graduating from a university. Earnings Income stream Income stream B Income stream a c 16 18 22 Age The area labeled e) refers to: The explicit, out-of-pocket costs incurred The opportunity costs incurred by someone who opted for income stream B (a high school graduate) The earnings premium earned by someone who opted for income stream B (a high school graduate) relative to a worker who did not obtain a high school diploma. The earnings premium earned by someone who opted for income stream C (a university graduate) relative to a worker who graduated from high school.
This diagram shows the age-earnings profiles of three different individuals who opt to choose three options: not graduating from high school, graduating from high school, and graduating from a university. Earnings Income stream Income stream B Income stream a c 16 18 22 Age The area labeled e) refers to: The explicit, out-of-pocket costs incurred The opportunity costs incurred by someone who opted for income stream B (a high school graduate) The earnings premium earned by someone who opted for income stream B (a high school graduate) relative to a worker who did not obtain a high school diploma. The earnings premium earned by someone who opted for income stream C (a university graduate) relative to a worker who graduated from high school.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
16
![This diagram shows the age-earnings profiles of three different individuals who opt
to choose three options: not graduating from high school, graduating from high
school, and graduating from a university.
Earnings
Income
stream
Income
stream
B
Income
stream
A
16 18
22
Age
The area labeled e) refers to:
The explicit, out-of-pocket costs incurred
The opportunity costs incurred by someone who opted for income stream B (a
high school graduate)
The earnings premium earned by someone who opted for income stream B (a
high school graduate) relative to a worker who did not obtain a high school
diploma.
The earnings premium earned by someone who opted for income stream C (a
university graduate) relative to a worker who graduated from high school.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4674fdad-fb21-490e-9a3b-caaf90794700%2Fce8b31af-330f-43ef-ad07-132b2684c70f%2Fv3b2wwb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:This diagram shows the age-earnings profiles of three different individuals who opt
to choose three options: not graduating from high school, graduating from high
school, and graduating from a university.
Earnings
Income
stream
Income
stream
B
Income
stream
A
16 18
22
Age
The area labeled e) refers to:
The explicit, out-of-pocket costs incurred
The opportunity costs incurred by someone who opted for income stream B (a
high school graduate)
The earnings premium earned by someone who opted for income stream B (a
high school graduate) relative to a worker who did not obtain a high school
diploma.
The earnings premium earned by someone who opted for income stream C (a
university graduate) relative to a worker who graduated from high school.
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