Some College Students Think That Because a College Degree Greatly

question 120

Multiple Choice

Some college students think that because a college degree greatly increases their earning potential there is no opportunity cost of attending college.How would an economist look at the matter?

• A)There is no opportunity cost, assuming that future earnings actually increase as expected.
• B)The opportunity cost is much less than it would appear, assuming that earnings increase.
• C)Opportunity cost is a meaningless concept in this situation.
• D)The college students are completely correct in all respects.
• E)There is still an opportunity cost, even if it is justified by higher future earnings.

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Definitions:

Experiment Design

The planning of an experiment to ensure it adequately addresses the research question, including the selection of variables, participants, and methods of data collection and analysis.

Cross-sectional

A type of observational study that analyzes data collected from a population, or a representative subset, at a specific point in time.

Panel

A group of the same individuals retained to answer questions over time.

Cohort

A group of people defined most typically by having an event in common.