Economic 101

Discussion Questions: 1. At times we all regret decisions. Does this necessarily mean we did not use the economic decision rule when making the decision? 2. Research shows that after-school jobs are highly correlated with decreases in grade point averages. Those who work 1 to 10 hours get a 3.0 GPA and those who work 21 hours have a 2.7 GPA. Higher GPAs are, however, highly-correlated with higher lifetime earnings. Assume that a person earns $8,000 per year for working part-time in college and that the return to a 0.1 increase in GPA gives a 10 percent increase in one's lifetime earnings with a present value of $80,000. What would be the argument for working rather than studying harder? Is the assumption that there is a trade-off between working and grades reasonable? o Post your graph as a jpg attachment to your initial post