Should you stay in school beyond the current semester? Describe ...

[pepyto]

Should you stay in school beyond the current semester? Describe how you might use the neoclassical theory of investment to help you decide.
 
  What will be an ideal response?

Question 2

Restrictive covenants place constraints on the behavior of ________.
 
  A) borrowers
  B) lenders
  C) the central bank
  D) the executive branch of the federal government

[atrochim]

Answer to Question 1

Additional schooling makes sense, if the expected marginal benefit is at least as large as the user cost. If I am close to graduation, and diploma capital contributes much to my expected income and/or valued competencies, the additional investment may be warranted. Even if graduation is a distant (or irrelevant) goal, the human capital I've acquired this semester might enhance the expected benefit of further schooling. I know the explicit and implicit costs of an additional semester, but will the knowledge I might acquire increase in value over time, or depreciate?

Answer to Question 2

A

[pepyto]

Excellent

[cassie_ragen]

TYSM