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Suppose There Are Two Workers: Individual a Goes to College

Question 2

Multiple Choice

Suppose there are two workers: individual A goes to college and individual B does not.What does this imply?


A) Individual A faces a higher market interest rate.
B) Individual A faces a lower market interest rate.
C) Individual A faces a higher reservation schooling cost.
D) Individual A faces a higher marginal return to schooling.
E) Individual A faces a lower marginal return to schooling.

Correct Answer:

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