Larry Was Accepted at Three Different Graduate Schools, and Must

question 119

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 surplus by attending:

• A) Elite U, because $60,000 is greater than the benefit at the other schools.
• B) State College, because the difference between the benefit and cost is greatest there.
• C) NoName U, because Larry has a full scholarship there.
• D) Elite U, because the opportunity costs of attending Elite U are the lowest.

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Definitions:

Avoidance

A coping mechanism involving the action of staying away from certain situations, activities, or people to prevent discomfort or anxiety.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Higher-Order Conditioning

A form of learning where a stimulus is paired with a previously conditioned stimulus, causing the new stimulus to elicit the conditioned response without a direct association.

Extinction

In psychology, the process through which a conditioned response diminishes and eventually disappears as a result of the conditioned stimulus being presented without the unconditioned stimulus.