Suppose workers with a university degree are paid a lifetime income of $40,000 and workers without a
university degree are paid $230,000. Which of the following statements is (are) TRUE?
a) b) c) d) Both high- and low-productivity workers choose to get a university degree.
Neither high- nor low-productivity workers choose to get a university degree.
The net lifetime income of high-productivity workers increases by $50,000 because of their
university degree.
Low-productivity workers are better off getting a university degree.