EAS100Y1 Lecture : Lecture Note for Nov. 4, 2010

It is well-known (from chapter 10 in the text that is not covered by this test) that college graduates tend to migrate across state lines much more than high school graduates do. What does this imply about the relative willingness of state governments to invest in public secondary and public higher education?

Which of the following measures will lower the natural rate of​unemployment? 

A. More high school graduates enter college without looking for employment right away.

B. Government increases the duration of unemployment compensation benefits.

C. Government increases spending to reduce job loss during a recession.

D. The labour force becomes less educated over time.

Matt observes that "there is a high correlation between educational attainment and the level of income." Jean concurs and adds that "high school graduates should all proceed to college."