skyler1muir
12.02.2021 •
Business
College students often borrow money to attend school. Generally, the plan is to pay loans back through future earnings. In this way, capital markets and labor markets are intimately connected. Assume that the market for education and the market for college educated labor are perfectly competitive. Show what happens to the market for education, and the market for college educated labor if the government increases the number of very low interest loans.
who gains and who loses by this policy?
Producers of Schooling- gain or lose
college graduates - gain or lose
consumers of education (without loans)- gain or lose
Employers of college graduates- gain or lose
Solved
Show answers
More tips
- O Other How to Accidentally Get a Rare Coin with Your Change and How to Know Its Value?...
- H Health and Medicine Simple and Effective: How to Get Rid of Cracked Heels...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
- F Family and Home Why Having Pets at Home is Good for Your Health...
- H Health and Medicine How to perform artificial respiration?...
- H Health and Medicine 10 Tips for Avoiding Vitamin Deficiency...
Answers on questions: Business
- M Mathematics Lelah has budgeted $135 for new clothes. She decides to buy a pair of shoes that cost $35.25, and then she buys some $18.25 shirts. Which inequality represents this...
- M Mathematics Sharon bought some bottles of water at Randolph s Grocery. Use the graph shown to answer the question. Which statement is true? A) Sharon spent $10 to buy 25 water...
- G Geography What again was the rationale for passing the Stamp Act, and why did the British government feel it was completely fair or justified? What was the central argument against...
- P Physics A capacitor consists of two closely spaced metal conductors of large area, separated by a thin insulating foil. It has an electrical capacity of 3800.0 μF and is charged...
Ответ:
See Explanation
Explanation:
Based on the information provided in the question, the people who gain will be:
1. Producers of Schooling - Since the college students often borrow money to attend school, this ultimately means that there'll be an increase in the number of students who wants to go to college. This is beneficial to the producers of schooling as they'll get more students and make more revenue.
2. Employers of college graduates- Since the college students often borrow money to attend school, this ultimately means that there'll be an increase in the supply of labor. Since there is an increase, there will be a reduction in the wage rate as supply of labor will be more than the demand.
The losers will be:
1. College graduates - They are losers because they'll get a lower pay due to the rise in the number of people that'll graduate from college.
2. Consumers of education (without loans)- They're also losers as there'll be an increase in supply of labor and decrease in wage rate offered.
2.
Ответ: