A student entering college wants to assess the value of investing in human capital. To determine whether the investment will be profitable, she should compare the
a. value of her total expected future earnings with the total of her direct and indirect costs of college.
b. present discounted value of future earnings with the total of her direct and indirect costs of her education.
c. present discounted value of her additional future earnings as the result of the college education with the present discounted value of only her direct costs of college.
d. present discounted value of her additional future earnings as the result of the college education with the present discounted value of her direct and indirect costs of college.
D
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Industrial production is an example of a:
A) leading indicator. B) coincident indicator. C) lagging indicator. D) none of the above.
If two bundles are on the same indifference curve, then
A) the consumer derives the same level of utility from each. B) the consumer derives the same level of ordinal utility from each but not the same level of cardinal utility. C) no comparison can be made between the two bundles since utility cannot really be measured. D) B and C.