Unformatted text preview: -Micro: o Individual economic agents: firms, institutions, consumers, (individual markets) Theory Application: Human Capital Investment -Making assumptions about human behavior. -You need to make simplified assumptions in order for them to work. -Assumption of Rationality: o Balancing costs and benefits to maximize personal advantage. o Psychic benefits, not just monetary. o People with a bachelors degree are 84% more likely to achieve judge success. o Its rational to go to college if the benefits – the cost are greater than or equal to 0! -Information: -Access: Racial Differences in Attainment: % of attaining a college degree or more: -Asians: 52.3% -Whites: 29.9% -Blacks: 19.3% -Hispanic or Latino: 13.2%...
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- Fall '11
- Economics, Theory Application, overall economic activity, Human Capital Investment, Consumption of Goods and Services