Consider the following statements about trends in the share…
Consider the following statements about trends in the share of income in the United States in recent decades. (1) The share going to the top 10% has increased. (2) Within the top 10 percent, the share going to the top 1% has increased. (3) Within the top 1 percent, the share going to the top .01% has increased. .Which of the above statements are true?
Read DetailsExplain one method of comparing the benefits and costs assoc…
Explain one method of comparing the benefits and costs associated with human capital investment, using a formula, especially what costs and benefits are associated with obtaining a college education. (3 points) Explain why is it necessary to determine the present value of costs and benefits in making a rational choice to undertake an investment, and in this case, higher education. (2 points) Most empirical studies suggest that the rate of return on investing in a college education has ranged from 15 to 20 percent, which supports that investment is a rational choice. What are some of the implications of HCT? What are some of the criticisms of HCT? (10 points)
Read DetailsConsider an individual who will invest a total of $10,000 in…
Consider an individual who will invest a total of $10,000 in direct and indirect costs for training in order to increase earnings by $12,500 for the next year. Suppose the interest rate is 8%. If this person plans to retire the following year, the net present value of this investment is:
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