Chapter 22, Problem 6DQ

To determine

The inflation-corrected price of college education.

Concept introduction:

Inflation:

Inflation is a situation in the economy when the demand for the goods and the prices of the goods increase simultaneously. This increase is greater than the desired level.

Explanation:

• The difference in the educational system today and 50 years ago can be identified easily. There are huge changes in the courses, adoption of technology, methods of teaching, and approaches.

• But if the college education is concerned, then there is hardly any change in the study material, only the way of teaching has changed.

• As the quality of education has changed, thus the inflation corrected prices have not changed much in college education.