A Student Entering College Wants to Assess the Value of Investing

question 6

Multiple Choice

A student entering college wants to assess the value of investing in human capital. To determine whether the investment will be profitable, she should compare the

• A) value of her total expected future earnings with the total of her direct and indirect costs of college.
• B) present discounted value of future earnings with the total of her direct and indirect costs of her education.
• C) present discounted value of her additional future earnings as the result of the college education with the present discounted value of only her direct costs of college.
• D) present discounted value of her additional future earnings as the result of the college education with the present discounted value of her direct and indirect costs of college.

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Definitions:

Genetic Explanation

An explanation attributing the cause of individual differences and behaviors to genes and hereditary factors.

Fraternal Birth-Order Effect

A phenomenon suggesting that a male child is more likely to be homosexual if he has more older brothers.

Same-Sex Sexual Contact

Sexual activities involving individuals of the same gender.

Lesbian

A female who feels emotional, romantic, or sexual attraction towards other females.