Assume That the Average Mid-Career Salary of Those with Bachelor's

question 169

Multiple Choice

Assume that the average mid-career salary of those with bachelor's degrees in the humanities is $55,000, while the mid-career salary of those with bachelor's degrees in engineering is $85,000. Ceteris paribus, which statement would be TRUE?

• A) The return on investment in a bachelor's degree is equal across fields of study because the costs also differ.
• B) There is a higher return on investment for a bachelor's degree in engineering than in humanities.
• C) There is a lower return on investment for a bachelor's degree in engineering than in humanities.
• D) Bachelor's degrees provide a negative rate of return.

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Definitions:

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust to help stabilize an economy during fluctuations.

Federal Budget Deficits

Occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings.

Aggregate Demand

The overall requirement for goods and services across an economy, evaluated at one price level and over a specified duration.

Wartime Borrowing

The process of governments taking on debt during times of war to finance military operations and support the economy.