Recall the Economics in Practice on Page 370: According to a Study

question 119

Multiple Choice

Recall the Economics in Practice on page 370: According to a study discussed in the Economics in Practice, when students were moved from a class taught by a below-average teacher to one at the 75th percentile, the move

• A) made no difference on the students' future annual earnings.
• B) increased the students' future earnings by 3.5% per year.
• C) increased the students' future earnings by more than 50% per year.
• D) actually decreased the students' future annual earnings.

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Definitions:

Nonmonetary Costs

Costs associated with a purchase that are not financial, such as time spent, effort, and emotional stress.

Opportunity Costs

The value of the best alternative forgone when a decision is made to pursue a particular action or investment.

Tangible Costs

Direct costs associated with the production or purchase of a good or service that can be easily quantified.

Value

The importance, worth, or usefulness of something to a person or in the market.