Lets use some basic mathematical tools from intermediate microeconomics. Suppose a high school student is debating whether or not to drop out from school. Let represent current-period utility from dropping out, and represent current-period utility from staying enrolled. Assume that : all else equal, students prefer to not be in school (they could be doing other more enjoyable things: shopping, gaming, socializing, etc.). Let and represent the expected present discounted value of future utility from dropping out or staying enrolled. We use expectations because the future is uncertain.

1) Using these four terms, write the mathematical expression necessary for a student to choose to stay enrolled. It will be an inequality of the form U(drop out)