ECON 3100 Ch. 6 Study Guide Questions with Complete Solutions

In 2017, approximately what percent of adults in the United States had not graduated from high school? Correct Answer-8%. In 2017, approximately what percent of adults in the United States had received more education than a high school degree? Correct Answer-67%. Which group tends to have the highest unemployment rate in the United States? Correct Answer-Blacks. Labor force participation rates tend to: Correct Answer-Increase with education for both men and women. Present value calculations allow one to determine the: Correct Answer-Present-day costs and/or benefits of various options. Paula is considering going to law school. If she does, she will spend $60,000 on tuition and books to get a college education (during the first time period), $120,000 on tuition and books to get a law degree (during the second time period), and her law degree will earn her $620,000 during the remainder of her work-life (during the third time period). Paula's time preference for money is associated with a per-period interest rate of 20 percent. Approximately what is Paula's present value of obtaining a law degree? Correct Answer-$270,500.