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Paul Schumer and Jim Miller, two analyst at a research institute, discuss the rising costs of higher education in their country
Paul Schumer and Jim Miller, two analyst at a research institute, discuss the rising costs of higher education in their country. Paul feels that escalating tuition fees in colleges and universities are indicative of a bubble in the higher education market. According to Jim, however, the rising costs are the result of better quality education being provided by the institutions in recent years. Which of the following , if true, will strengthen Jim's claim? A. The gap between the earnings of college graduates and non-graduates is increasing. B. The demand for student loans has fallen in the last few years. C. Students in most colleges complain of bad infrastructure. D. Salary levels in the education sector have remained more or less unchanged over the last few years.
Expert Solution
The correct answer is: C. Students in most colleges complain of bad infrastructure.
Students complain about infrastructure, which strengthens Jim's argument that costs rise because of an increase in quality. The cost of education increases when the institution provides better infrastructure to students.
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