An Economic Model Suggests That an Additional Year of Education

question 16

Essay

An economic model suggests that an additional year of education increases a student's future wages by 15 percent.Using this model,answer the following questions.
a)Gary completes 8 years of education,and John completes 9 years of education.If Gary earns $20 per hour,how much is John expected to earn?
b)John completes 9 years of education,and Kevin completes 12 years of education.Given John's earnings (as calculated in part a),how much is Kevin expected to earn?
c)Is there any limitation to such a model? Explain your answer.

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Definitions:

Environmental Factors

External elements that can influence the development or behavior of individuals, including social, cultural, and physical aspects.

Behaviorists

Psychologists who study the observable behaviors of individuals and believe that all behaviors are acquired through conditioning.

Genes

Segments of DNA responsible for hereditary traits, acting as instructions to make molecules called proteins.

Cause-And-Effect

The relationship between events or things, where one is the result of the other or others, typically defined as a cause leading to one or more effects.