Hundreds of Studies Have Been Conducted That Shows That Earning

question 15

Multiple Choice

Hundreds of studies have been conducted that shows that earning go up by _____ for every _______?

• A) 10-20%; additional $1000 spent on education
• B) 25-50%; 1 year of additional schooling completed
• C) 10-20%; 1 year of additional schooling completed
• D) 25-50%; additional $1000 spent on education

---

Definitions:

Price Floor

A government- or authority-imposed minimum price that can be charged for a good or service, intended to prevent prices from falling too low.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers matches the quantity supplied by producers, resulting in no surplus or shortage.

Market Price

The actual selling price of a good or service in the market at which it can be bought or sold.

Surplus

The amount by which quantity supplied exceeds quantity demanded, often resulting in excess goods and a decrease in prices.