The Decision to Go to Graduate School Is a Rational

question 308

Multiple Choice

The decision to go to graduate school is a rational one for a college student if the

• A) cost is not too great.
• B) marginal cost exceeds the marginal benefit of graduate school.
• C) marginal benefit of graduate school exceeds the marginal cost.
• D) opportunity cost of graduate school equals zero.
• E) student carefully compared the social benefits of this decision.

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Definitions:

Linear

A straight line used to represent a relationship between two variables, showing a constant rate of change from one variable to another.

Inverse Demand Function

Represents the price of a good as a function of its quantity demanded, showing the maximum price consumers are willing to pay for a given quantity of the good.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, showing the sensitivity of quantity demanded to price changes.

Grapes

Edible berries, typically growing in clusters on a vine, used in making wine, eaten fresh, or dried to produce raisins.