Which of the following would be the most likely result from a new government program that provided significant financial aid for children of low- and middle-income families to attend college?
A) Starting salaries for new college graduates would rise because of an increase in the number of high-quality graduates.
B) Starting salaries for college graduates would be unaffected.
C) The productivity of the labor force would be permanently lower because more young people would choose to be students instead of workers.
D) Starting salaries of new college graduates would fall as the supply of graduates increased.

Question

Quizplus · Accepted Answer

An increase in the number of college graduates due to financial aid would likely lead to a higher supply of graduates, which could result in lower starting salaries due to the increased competition for jobs.

Which of the Following Would Be the Most Likely Result