Even When University Education in Australia Was Free, Not Everyone

question 43

Multiple Choice

Even when university education in Australia was free, not everyone got a degree.Which of the following is one possible reason for why some people would get degrees while others would not?

• A)although free in a monetary sense getting a degree takes time and effort, the cost of which will be lower for high-skilled people than low-skilled people
• B)the human capital effects of university have been shown to be small, corresponding to only small increases in wages
• C)the benefits of education are likely to be higher for low-ability people than for high-ability, and so high-ability would not find it profitable to attend university
• D)none of the above

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Definitions:

Opportunity Cost

The amount of other products that must be forgone or sacrificed to produce a unit of a product.

Government Deficits

The financial shortfall when a government's expenditures exceed its revenues.

Domestic Output

The sum of the worth of all products and services generated inside the confines of a nation over a specific duration.

Industrially Advanced Countries

Nations characterized by high levels of industrialization, technological advancement, and economic productivity.