Which of the Following Statements Is NOT a Reason That

question 23

Multiple Choice

Which of the following statements is NOT a reason that the cost of a college education is greater for the low-productivity group than for the high-productivity group?

• A) The wages they give up by going to college instead of working will tend to be higher for them.
• B) They may have to pay for tutoring services or other extra help to accomplish the same educational goal.
• C) They may have to take remedial classes, which would increase the length of time it takes to accomplish the same goal.
• D) Even if they take no remedial classes, they may have to spend more time studying for each class, and the value of their leisure time needs to be considered in the calculation.
• E) Based on previous signaling, such as from their high school grades or SATs, they may receive less merit-based financial assistance, and thus be under a greater financial strain during their college years.

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Definitions:

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-off between different choices in the allocation of resources.

Recession

A significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Depression

A prolonged and severe downturn in economic activity, characterized by high unemployment, falling prices, and reduced levels of trade and investment.

Production Possibilities Frontier

A graph illustrating the maximum possible output combinations for two products that a country can produce given its technological capabilities and quantity of inputs.