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:

Effective Communication

The ability to convey information to another effectively and efficiently, often considered a key skill in both personal and professional settings.

Correct Channel

The proper or most effective route or medium for communication or distribution.

Effective Message

Communication that is clearly understood, received as intended, and accomplishes its intended purpose.

Vital Signs

Measurements of the body’s most basic functions, including temperature, pulse, respiration rate, and blood pressure.