LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Chapter 6, Problem 11P
To determine
The effect on the price of a university education to potential students.
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Given your experience and what you have learned from the chapter, consider what factors are likely to lead to a high income.
Using your knowledge, identify each of the given statements as true or false.
True
Starting a business is the easiest way to earn a high income.
Answer Bank
Many people will experience poverty at some point in their lifetimes.
If your parents earned higher incomes than average, you are more likely to earn a higher than average income.
False
Obtaining a master's degree guarantees you a higher income than just possessing a high school diploma.
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It is believed that Health Savings Accounts will reduce the total amount of money spent on seeing doctors. Using Supply and Demand analysis, explain why there is the expectation that HSA’s will reduce spending on doctors.
What do we mean by the economics of education? To what extent do you think educational planning and policy decision ought to be guided by economic considerations. Explain.
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