Question 1

If e-books begin to be the most popular form of textbooks, it is

Accepted Answer

E-books can reduce production and distribution costs for publishers and authors, potentially increasing their profits and control over piracy. Traditional bookstores might suffer due to decreased physical book sales, and costs to students could decrease due to lower production and distribution costs of e-books.

Question 2

In the United States, the average government subsidy for a college education at a flagship, state institution is approximately __ for every $1 spent by the student.

Accepted Answer

The correct answer is A because the average government subsidy for a college education at a flagship, state institution is approximately $0.65 for every $1 spent by the student.

Question 3

Since 1960 the percentage of the population with a college degree has increased from __ to __.

Accepted Answer

Since 1960, there has been a significant increase in the percentage of the population obtaining a college degree, growing from less than 10% to approximately 35%. This reflects the expanding access to higher education and the increasing value placed on a college degree in the job market.

Question 4

If e-books begin to be the most popular form of textbooks, it is

Accepted Answer

The answer of If e-books begin to be the most...

Question 5

Between 1992 and 2012, the percentage of students borrowing to pay for college

Accepted Answer

Between 1992 and 2012, there was a significant increase in the percentage of students borrowing to pay for college, rising from 34% to 57%. This reflects the growing reliance on student loans to finance higher education in the United States during that period.

Question 6

If e-books begin to be the most popular form of textbooks, it is

Accepted Answer

The answer of If e-books begin to be the most...

Question 7

In the 1980s, President Reagan shifted government education policies toward

Accepted Answer

In the 1980s, President Reagan shifted government education policies toward increased availability of subsidized student loans.

Question 8

Estimates of the value of a college education to the student are that there is

Accepted Answer

The $330,000 net present value benefit refers to the estimated amount that a college degree can add to a student's earnings over the course of their career. This benefit includes both the direct and indirect benefits of a college education. Therefore, option A is the correct choice.

Question 9

The strategy of faculty choosing to stay with an old edition of a book is

Accepted Answer

Choosing to stay with an old edition of a book may be a short-term solution for individual faculty members to save money, but if too many choose to do so, it may become unsustainable as publishers may stop printing the older editions or stop publishing altogether. Additionally, authors may not receive the royalties they are entitled to for older editions. Therefore, this strategy is not in the best interests of publishers or authors, and it is unlikely to be replicated by everyone.

Question 10

Estimates of the value of a college education are based on

Accepted Answer

Estimates of the value of a college education are typically based on the present value of future earnings compared to the costs of obtaining the education.

Question 11

The strategy of faculty choosing to stay with an old edition of a book is

Accepted Answer

Choosing to stay with an old edition of a book reduces the cost to students as they can buy used or cheaper copies of the book.

Question 12

To compare the costs of a college education with its monetary benefits, economists use the concept of

Accepted Answer

Economists use present value to compare the costs of a college education with its monetary benefits. Present value is a concept in finance that accounts for the time value of money, allowing for the comparison of costs and benefits in different time periods. This is particularly useful when considering the costs of a college education, which are usually incurred in the present, while the benefits accrue over a longer period of time.

Question 13

In the United States, the average government subsidy for a college education at a private institution is approximately __ for every $1 spent by the student.

Accepted Answer

The average government subsidy for a college education at a private institution in the United States is less than $0.65 for every $1 spent by the student. This reflects the lower level of public funding support for students attending private colleges compared to those attending public institutions.

Question 14

Suppose a college education is choosing between a modestly expensive school ($100,000 over 4 years)and a less expensive school ($40,000 over 4 years)the student should

Accepted Answer

The choice of a more expensive school should be based on the present value of the difference in salary over the course of a career, which should justify the additional cost of education. In this case, that difference should be at least $60,000 to justify choosing the more expensive school.

Question 15

In the United States, the average government subsidy for a college education at a regional, bachelors-only public institution is approximately __ for every $1 spent by the student.

Accepted Answer

The answer of In the United States, the average government...

Question 16

Suppose a college education is choosing between an expensive school ($200,000 over 4 years)and a less expensive school ($40,000 over 4 years)the student should

Accepted Answer

The student should choose the more expensive school only if the present value of the difference in salary is $160,000 or more. This means that the increase in salary that the student will earn over their lifetime by attending the more expensive school should be enough to compensate for the additional $160,000 in costs. If the present value of the difference in salary is less than $160,000, then it would not make financial sense to attend the more expensive school. This analysis takes into account the time value of money and the opportunity cost of the additional $160,000 that could have been invested or used for other purposes.

Question 17

To compare the costs of a college education a wise student, when choosing between an expensive school with a high expected income and a less expensive school with a lower expected income would use the concept of

Accepted Answer

The wise student would use the concept of present value to compare the costs of a college education when choosing between an expensive school with a high expected income and a less expensive school with a lower expected income. Present value takes into account the time value of money and allows the student to compare the total cost of each option over the duration of the loan period. This helps the student to make an informed decision based on the long-term financial impact of their choice.

Question 18

Between 1992 and 2012, the percentage of college students receiving federally funded grants

Accepted Answer

The percentage of college students receiving federally funded grants increased significantly over this period, reflecting a trend towards greater reliance on federal aid to finance higher education. This is consistent with efforts to make college more accessible through financial aid.

Question 19

Between 1992 and 2012, the percentage of college students receiving some form of aid

Accepted Answer

The passage states that between 1992 and 2012, there was an increase in the percentage of college students receiving some form of aid from 58% to around 84%. Choice A is incorrect because the percentage increased, rather than decreased. Choice B is incorrect because the percentage did not remain constant, it increased. Choice D is incorrect because the percentage decreased from 73% to 58% is not supported by the passage.

Question 20

In the 1990s President Clinton worked for

Accepted Answer

During the 1990s, President Bill Clinton worked on various education reforms, including the introduction of tax credits and deductions for education to make higher education more accessible and affordable for American families.

Quiz 37: Economics of College and University Education

If e-books begin to be the most popular form of textbooks, it is

In the United States, the average government subsidy for a college education at a flagship, state institution is approximately __ for every $1 spent by the student.

Since 1960 the percentage of the population with a college degree has increased from to .

If e-books begin to be the most popular form of textbooks, it is

Between 1992 and 2012, the percentage of students borrowing to pay for college

If e-books begin to be the most popular form of textbooks, it is

In the 1980s, President Reagan shifted government education policies toward

Estimates of the value of a college education to the student are that there is

The strategy of faculty choosing to stay with an old edition of a book is

Estimates of the value of a college education are based on

The strategy of faculty choosing to stay with an old edition of a book is

To compare the costs of a college education with its monetary benefits, economists use the concept of

In the United States, the average government subsidy for a college education at a private institution is approximately __ for every $1 spent by the student.

Suppose a college education is choosing between a modestly expensive school ($100,000 over 4 years) and a less expensive school ($40,000 over 4 years) the student should

In the United States, the average government subsidy for a college education at a regional, bachelors-only public institution is approximately __ for every $1 spent by the student.

Suppose a college education is choosing between an expensive school ($200,000 over 4 years) and a less expensive school ($40,000 over 4 years) the student should

To compare the costs of a college education a wise student, when choosing between an expensive school with a high expected income and a less expensive school with a lower expected income would use the concept of

Between 1992 and 2012, the percentage of college students receiving federally funded grants

Between 1992 and 2012, the percentage of college students receiving some form of aid

In the 1990s President Clinton worked for