A Year's Tuition at a State University Cost $250 in 1972

question 155

Multiple Choice

A year's tuition at a state university cost $250 in 1972 when the CPI equaled 0.418. The cost of a year's tuition at the same state university cost $8,000 in 2016 when the CPI equaled 2.40. The real cost of tuition between 1972 and 2016:

• A)increased.
• B)decreased.
• C)remained constant.
• D)may have either increased or decreased.

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Definitions:

Labor Force

The total number of people employed and unemployed, actively seeking employment in an economy.

Production Possibilities Frontier

A curve depicting the maximum output of two goods that can be produced with given resources and technology, assuming all resources are fully utilized.

Improvement In Technology

Enhancements or advancements in technology that increase productivity or efficiency, often leading to economic growth.

Annuity Due

An annuity for which the payments are made at the beginning of each period, as opposed to the end in a regular annuity.