Dividends are the interest rates paid on stocks

At age 40, Joe is considering quitting his job and going back for a college degree. He needs two more years full-time. Tuition is $10,000 per year. He earns $30,000 per year. A college degree would raise his annual income by $10,000 per year

He will retire at age 70. Which of the following makes it more likely that Joe will decide to go back to college full-time? A) The rate of interest increases. B) The rate of interest decreases. C) The government enacts mandatory retirement at age 60. D) Tuition increases.

Martin is in the market for a new television set. He is deciding between two sets: one is rather expensive but offers a guarantee; the other has a lower price but offers no guarantee. Martin's decision to buy the expensive set would indicate that:

a. Martin does not know a good deal when he sees it. b. Martin interpreted the guarantee as a signal of quality. c. Martin did not shop around to get a better deal. d. Martin is not maximizing his utility. e. Martin has a high income.