In determining whether a further investment in education for an individual is worth the costs, an economist would look at whether the sum of the
A. annual education costs is exceeded by the sum of the increases in income that are attributable to the increased education.
B. present value of the annual education costs is exceeded by the sum of the present value of the annual income to the person.
C. annual education costs is exceeded by the sum of annual income to the person.
D. present value of the annual education costs is exceeded by the sum of the present value of the increases in income that are attributable to the increased education.
Answer: D
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Refer to the scenario above. Jack and Jill will derive maximum utility if:
A) Jack tries to move the tree while Jill does not. B) Jill tries to move the tree while jack does not. C) both of them try to move the tree. D) neither of them tries to move the tree.
All points below a given indifference curve are
A) less preferred to any point on the indifference curve. B) preferred to any point on the indifference curve. C) definitely affordable. D) Both answers A and C are correct.