Larry Was Accepted at Three Different Graduate Schools, and Must

question 110

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. Larry maximizes his economic surplus by attending:

• A)Elite U.
• B)State College.
• C)NoName U because he has a full scholarship there.
• D)NoName U because the annual cost is only $20,000.

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Definitions:

Economy Sector

An economy sector is a segment of the economy, categorized by the type of activity involved, such as agriculture, manufacturing, or services.

Involuntary Part-time Workers

Individuals who are working fewer hours than they desire or need, due to circumstances such as an inability to find full-time employment or cuts in work hours by their employer.

Previously Retired

Refers to individuals who had exited the workforce upon reaching the age or conditions for retirement but may have returned to work or active professional life.

Part-time Employees

Workers who are employed for fewer hours than those considered full-time, often with less stability and fewer benefits.