Larry Was Accepted at Three Different Graduate Schools, and Must

question 130

Multiple Choice

Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. What is Larry's economic surplus from attending State College instead of his next best alternative?

• A)$40,000
• B)$20,000
• C)$10,000
• D)$5,000

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Definitions:

Basic Demographic

Fundamental population characteristics such as age, sex, and race used in analysis and policy development.

World Population

The total number of humans currently living on Earth, a figure that is continually monitored and projected.

Urban Sprawl

A derogatory term for the expansion of urban or suburban boundaries, associated with irresponsible or poorly planned development.

Conflict Theory

A paradigm that sees social conflict as the basis of society and social change, and that emphasizes a materialist view of society, a critical view of the status quo, and a dynamic model of historical change.