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:

Mental Image

A representation of sensory information or experiences in the mind, which can be visual, auditory, or related to other senses.

Mental Representation

An internal image or symbol in the mind that represents external reality or complex ideas, allowing for thought and problem-solving.

Common Properties

Characteristics or features that are shared by a group of objects, concepts, or entities.

Integrated Mental Network

A theoretical concept suggesting that mental processes and knowledge are interconnected in a complex network within the brain.