49Which of the Following Correctly States the Effect of Additional

question 117

Multiple Choice

49.Which of the following correctly states the effect of additional schooling on average lifetime income?

• A)Earning a high school diploma and a college degree do not change average lifetime income levels.
• B)Earning a high school diploma does not affect income,but earning a college degree raises lifetime income.
• C)Earning a high school diploma raises income,but earning a college degree does not affect lifetime income.
• D)Earning a high school diploma and earning a college degree both raise lifetime income levels.

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Definitions:

Boot

Additional cash or property included in a transaction to even out a trade or exchange of dissimilar assets.

Depreciated

Refers to the reduction in the value of an asset over time due to wear and tear or obsolescence.

Nonmonetary Asset

Assets that cannot be easily converted into cash and hold value in forms other than currency, such as property, equipment, and patents.

Boot

In finance and real estate, boot refers to cash or other property added to an exchange or transaction to make it equitable.