Author Question: Should you stay in school beyond the current semester? Describe how you might use the neoclassical ... (Read 53 times)

pepyto · **on:** Jun 30, 2018

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 · **Reply #1 on:** Jun 30, 2018

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