When Calculating the Worthiness of a College Education,one Must Use

question 7

Multiple Choice

When calculating the worthiness of a college education,one must use __________ values because the costs and benefits __________.

• A)nominal;are estimated
• B)discounted;accumulate over time
• C)real;cannot keep pace with inflation
• D)non-monetary;are largely non-monetary

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Definitions:

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.

Subsistence

The minimum level of essentials (such as food and shelter) necessary for an individual to survive.

Catch-Up Effect

The theory suggesting that less developed countries can grow at a faster rate than developed countries because they can adopt existing technologies and best practices.