Premium Essay

Monetary Returns to Econ Degree

In: Business and Management

Submitted By kfitz518
Words 1055
Pages 5
For my project I will be presenting both the NPV and IRR calculations for a graduating senior in the B.S. Economics program at Lehigh University. However, before I start my discussion about my methodologies and findings, I think it is important to discuss why this study is so important. To so many people, myself included, college is really taken for granted and idea that education is an investment in the future isn’t recognized until its time to get a job. If I had been presented with more of this information regarding rates of return for different majors and disciplines, I may have had a different path through college. This data can be incredibly helpful to high school students who are on the edge between deciding to go to college and deciding not to go to college. This is especially relevant with all the financial aid programs today, most people can afford to go to school through loans, and from my findings most will benefit from it in the long run. If this data were more readily available to high school students, I believe we would see an increase in high school graduates attending college because they would more easily be able to see the benefits.
To do this I will be using a breadth of sources including data from the National Association of Colleges and Employers and Lehigh’s own empirical data on its college graduates. Throughout the process of this assignment, I have run into several obstacles to calculating the returns to my specific degree. The first issue that I discovered has to do with the scope of jobs that someone with a bachelor of science in Economics can wind up with. Looking at data from Lehigh’s career services office confirmed my initial suspicion that it would be difficult to calculate the returns to a degree for my specific situation because of the different fields an Economics major can go into. Wages can significantly differ from…...

Similar Documents

Premium Essay

Monetary Policy

...Monetary Policy ECON 201 Roger Capretta 5 October 2012 Governments use monetary policy as a tool to influence their economy. Usually, government will find a way to influence the economic activity in connection with their political objectives by using their monetary authority to control the availability and supply of cash flow throughout the economy. Their main goal is to achieve macroeconomic stability by enabling low unemployment, low inflation, economic growth and a balance of external payments. A Central Bank is usually appointed to administer an economy’s monetary policy. The main goal of monetary policy is to promote solid economic performance and higher living standard amongst the public within the economy. Low, stable, and predictable inflation is a great way to judge how an economy’s functioning. There are three objectives to monetary policy. They are price stability, maintenance of full employment and also economic activity and welfare of people within an economy. Price stability is directly related to the price level of goods or services. This price can directly affect the economic growth based upon if it is high or low. This can also lead to full employment. When good and services are selling, companies have the ability to hire more employees which raises the employment level. When money is flowing through an economy and people are working and not unemployed the economic activity is high which will lead to economic prosperity. The Federal Reserve plays...

Words: 1444 - Pages: 6

Premium Essay

Econ

...advantage. What is comparative advantage? Colby Bryan mit have an absolute advantage for cutting his grass (he can do it better and faster) but someone else has a comparative advantage because Colby's cost of mowing the lawn could be very high. No trade tariffs between Canada Mexico US Chapter 14: federal reserve bank and monetary policy Check clearing What other functions does Federal Reserve do? What is absolute advantage? What are the three specific tools the Fed has to work with? Discount Rate Board of Governors has how many people and how are they put into power? Arguments in favor of free trade How many Reserve Banks are there? Each has one president Chairmain of board of governors? 1913 Excess reserve Fed was Created when? 12, one in each region Ben Bernanke 7, appointed by president and confirmed by senate. 19 people, meet 8 times a year at the FOMC: Federal Open Market Committee? 19 powerful people What is "Infant industry" Augments in favor of protection How many powerful people does this make and how often do they meet in what committee? Chapter 19 What does the FMOC do and who are it's members? Meet to pass monetary policy. Monetary supply Taxes on imported goods, known as? What tools can we use to protect our domestic producers? What broad tools does the Fed have to work with? Free trade Interest rates Which specific bank has the power to buy and sell bonds? Buying and selling bonds Most effective Bank of New......

Words: 2975 - Pages: 12

Premium Essay

Monetary

...Money began as a standard medium of exchange for a trading community. Money could be in any form, which depends on the location of the community. Some textbooks state the function of money in four matters; as a medium of exchange, a unit of account, a standard of deferred payment, and a store of value. Money has develop in pace and parallel with human civilization from the barter-system, the commodity money, the evolution of the fiat money to the technology of e-money. The Barter System Barter system is an old-age method that was created adopted by people to exchange their services and goods for other goods or services in return. During ancient times, barter system was a local phenomenon, which involved people in the same locality. The history of bartering-system can be traced back to 6000 BC where it is believed that barter system was introduced by the tribes of Mesopotamia. This system was then adopted by the Phoenicians, who bartered their goods to people in other cities located across the oceans. People used to exchange their goods for weapons, tea, spices, and food items and sometimes, even human skulls were used for barter. The advantage of bartering is that it does not involve money. You can buy an item in exchange for some other thing you currently have, but don't want. But despite the advantages, the main drawback of this system was that there were no standard criteria to determine the value of goods and services, and this resulted in disputes and clashes.......

Words: 1671 - Pages: 7

Premium Essay

Econ 600

...ECON 600 Lecture 3: Profit Maximization I. The Concept of Profit Maximization Profit is defined as total revenue minus total cost. Π = TR – TC (We use Π to stand for profit because we use P for something else: price.) Total revenue simply means the total amount of money that the firm receives from sales of its product or other sources. Total cost means the cost of all factors of production. But – and this is crucial – we have to think in terms of opportunity cost, not just explicit monetary payments. If the owner of the business also works there, we must include the value of his time. If the firm owns machines or land, we must include the payments those factors could have earned if the firm had chosen to rent them out instead of using them. If only explicit monetary costs are considered, we get accounting profit. But to find economic profit, we need to take into account the opportunity cost, implicit or explicit of all resources employed. The main constraints faced by the firm are: • • • II. technology, as summarized in the cost curves of the last lecture; the prices of factors of production, also taken into account by the cost curves; and the demand for its product. Demand Curve Facing the Firm The firm’s demand curve tells how much consumers will buy at each price from a particular firm. (This is distinguished from other kinds of demand curve, such as the market demand curve, which shows how much consumers will buy at each price from all firms put together.) The......

Words: 3379 - Pages: 14

Premium Essay

Monetary Policy

...Abstract The study investigates the effects of Monetary policy on some significant economic variables like exchange rate, gross domestic product and inflation using data from 1960-2010 to analyze the results. We have taken the data in percentage form. A great number of empirical studies on the relationships of monetary policy and inflation are available and most of these have analyzed the effectiveness of monetary policy in controlling inflation in Pakistan. In this paper we have presented the effectiveness of monetary policy it’s framework and data estimation through which we reached to the conclusion that monetary shocks do affect real variables like GDP, inflation and exchange rate. Pakistan has been estimated by a number of researchers and it has been recognized that monetary phenomenon are responsible for the high levels of inflation. Keywords: Monetary Policy, Inflation, Exchange rate, Economic Growth, Gross domestic product and Pakistan. Introduction This paper attempts to examine the long-run effects of Monetary Policy on several economic variables such as inflation, economic growth that is gross domestic product and exchange rate in Pakistan. For this purpose, analysis have been employed for the period 1960-2010. As monetary policy actions affect policy variables with a significant gap and with high degree of unpredictability and insecurity, it is key to predict the probable impact and degree of monetary policy actions on the real variables. Usually, policy......

Words: 2772 - Pages: 12

Premium Essay

Econs Paper

...Name: Azwirah Yasin Course: Econs 001 Title: The strength of a currency reflects its credibility. Or is it the other way round Date: 11/21/2014 In this world of globalization, every country have the strong desire to move the nation forward and nurture their determination to sustain, develop and increase its power among other countries. It is indeed a known fact that we somehow have the richest country to the poorest country, each striving to attain credibility and integrity with countless ways done by their government, Congress, President and society. In short, money plays a massive role in the global economy. Back when I was a teenager, I used to follow my uncle to his work as he owns a money changer and observe blindly how the currency in my country, Malaysia changes from day to day. I would be asking myself about the reason and the aftermath for the currency change. I was told that having a strong currency is what a country would strive in the end. A strong currency means a strong nation, thus a richer country. I began to question the rightness of the fact. Does the strength of the currency really reflect the credibility of its nation? In general, according to an article on New York Times, it is said that ‘The supply of dollars to the foreign exchange market comes from Americans who want to buy goods, services or assets from abroad. The demand for dollars comes from foreigners who want to buy from the United States.’ As said, when there is a high demand, the......

Words: 2673 - Pages: 11

Premium Essay

Econ

...Econ 371 Development Economics Homework 1 Due on Feb 9th, 12:30pm. You may discuss the assignment with your classmates but you are expected to complete and write up the homework independently. If you use online materials or from sources other than the assigned video and the lecture notes, then you must list your references. 1. The Many Faces of Underdevelopment Health conditions (for example, life expectancy and infant mortality rate) in an economy are an important aspect of economic development. 1) How is life expectancy correlated with the income level? Does this imply that better health conditions are the cause of a high level of income? Explain. Life expectancy is positively correlated with the income level. This does not imply that better health conditions are the cause of a higher level of income, because correlation does not imply causality. For example, the positively correlation between life expectancy and the income level may because a) better health conditions lead to higher income, or b) higher income lead to better health conditions, or c) something else cause both better health conditions and higher income. 2) According to basic growth models, do better health conditions contribute to higher income levels? Explain. Yes. Better health conditions means higher accumulation of human capital in an economy. According to the endogenous growth models, human capital is one type of capital. In basic growth models, capital accumulation is one of the driving......

Words: 1794 - Pages: 8

Premium Essay

Monetary

...MONETARY POLICY 1.GREETINGS & TOPIC Good afternoon everyone. My name is Candy and this is my partner Carrie. Today we are going to introduce a topic of monetary policy. 2. OUTLINE For the beginning, let me introduce our presentation outline. Our presentation is included 7 sections. Firstly, I will introduce the definition of monetary policy. Then, I’m going to talk about the justification which is why we choose this topic. After that, I will present the category of monetary policy which a EMP and CMP. For the next part, I will hand over to Carrie, she will present what are the objectives and tools of monetary policy. Then, Carrie will continue to give us a conclusion. At the end of our presentation, there will be time to discuss questions. Now let’s get started. 3.DEFINITION First of all, I will talk about, what is monetary policy. Monetary policy has been defined by many scholars, and most of them have the same understanding. So here, I cite one of the definition which is presented by Senn(1999,p 339), he defines that monetary policy is the actions of a central bank which involves management of money supply and interest rate to guide healthy economic growth and to achieve macroeconomic objectives. I want to point out that all the actions of policy are executed by the central bank or a set of banking system which closely connect with the central bank. They have the right to publish money, to change the supply and demand of money and......

Words: 1027 - Pages: 5

Premium Essay

Monetary Funf

...When the International Monetary Fund was established, the founders has six purposes in mind. There were as stated in Article 1 of the original Article of Agreement: 1. To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems. 2. To facilitate the expansion and balanced growth on international trade, and to contribute thereby to the promotion and the maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy. 3. To promote exchange stability, to maintain or orderly exchange arrangements among members, and to avoid competitive exchange depreciation. 4. To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which the growth of world trade. 5. To give confidence to members by making the Fund’s resources available to them under safeguards, thus providing them with the opportunity to correct maladjustments to measure destructive of national or international prosperity. 6. In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members. According to the text “The IMF’s mandate is to promote international monetary cooperation,......

Words: 487 - Pages: 2

Premium Essay

Degree

...offering a variety of merchandise at affordable prices. Despite having two branches in two different east coast states, MYDIN remained widely popular only in the east coast. It took another 10 years before they decided to venture to a more crowded metropolis in the west coast state. Third migration: The critical move of a leader’s heart and soul into the entrepreneurial world In 1989, MYDIN opened its third branch in Jalan Masjid India, Kuala Lumpur. It was a momentous departure in terms of a shift in location competitive dynamics as Mydin venture beyond its familiar background of the east coast to prove its mettle against larger retailers in the growing metropolis. Beyond this, it also marked another crucial milestone, an emotional return of Mr Mydin’s prodigal Nik Maheran, Filzah, Siti Norezan 2 INTERNATIONAL CENTRE OF LEADERSHIP (ICLIF) - 2009 son, Dato’ Ameer Ali who had never shown any interest in the family business back into the family fold but had carved a niche for himself in the banking industry all these while. Dato’ Ameer Ali Mydin “We will grow. Now our sales are over one billion and in three years, we will gain five billion. We got eight hypermarkets which will be opened in the coming years, two in Kota Bharu, Port Dickson, Kucing and several other places……”. Dato‟ Ameer, Sept 2008 Visionary statements of Dato‟ Ameer towards expansion of MYDIN to transform Itself, from just an emporium to a gigantic hypermarket… Under the reins......

Words: 9691 - Pages: 39

Premium Essay

Econ

...ECON 410.502 Macroeconomic Theory Spring 2010 Instructor: Guangyi Ma Extra Problems #1 Suggested Answers and Comments Notice: (1) This set of extra problems contains 25 multiple-choice problems and 6 analytic (short-answer) problems. These problems are not homework and will not be graded. The aim of these problems is to provide you with additional exercises. (2) I will give solutions of the assignment and the “extra-problem” set after the due date. Page 1 Problem 1~25: Multiple choice problems 1. C 2. A 3. D This problem helps you pay attention to the difference between variables and functions. First, whether prices (wages are prices for labor) are assumed to be flexible or 4. C sticky depends on the time horizon. In other words, the assumption of flexible prices is proper in a long-run model while the assumption of sticky prices makes sense in a short-run model. Second, a large part of macro-theory is based on the optimizing behavior of individual agents, such as households and firms, but the main concern of macroeconomics is the movement of the whole economy aggregated from those individual decisions. 5. B Economists, as well as most other social scientists, cannot do controlled experiments. 6. A Consider the National Income Accounts Identity: Y = C + I + G + NX 7. B 8. C Inventory is a kind of investment, so the sale of inventory can be understood as a decrease of investment, but there is an increase in consumption in the same......

Words: 1249 - Pages: 5

Premium Essay

Econ

...25 markers Econ The term inflation means a persistent increase in the level of prices. The question believer that an increase in aggregate demand can cause inflation, however there can also be other factors that can cause inflation. The term aggregate demand is that total planed expenditure in the economy. Known by the identity C+I+G+(X-m). In macroeconomics there are 2 types of inflation, demand-pull inflation and cost-push inflation. The demand-pull inflation is caused by an increase in total spending (aggregate demand), the economy is producing beyond the economy’s ability. The aggregate demand in an economy strongly outweighs the aggregate supply, which cause the price to increase. As the economy reaches full capacity, firms will be struggling to produce enough to meet the rising demand. As you can see from the figure, AS is slow curving up and becoming inelastic because of full capacity. The demand curve then shifts to the right because of a high demand, from AD1 to AD2. This causes involuntary stock depletion due to a low supply. When this happens, firms will choose to increase price to widen the profit margins. So price level increase from P1 to P2. Furthermore, as employment in an economy increase, the demand in goods and services will be much more inelastic. This allows firm to increase the price more without any significant fall in demand. There are various reasons that can cause an increase in aggregate demand. First of all, a decrease in exchange rate......

Words: 626 - Pages: 3

Premium Essay

Econ

...ECON Project I. Introduction The efficient market hypothesis says that these returns should not be systematically related to the information known in 1990. We have the data of the return of the stock prices from various firms over the four-year period between the end of 1990 and the end of 1994. If the characteristics of a firm reflected the return of the stock, this could help with predicting the stock price in the future. We hypothesize that the return of the stock are related to debt capital ratio, earnings per share, salary of the CEO, net income, logarithm of net income and salary, and the stock price at the end of 1990 and 1994. II. Literature Review We are formulating how the CEOs compensation can affect the stock prices within a four-year period between the end of 1990 and 1994.An investigation based on the use of individual evaluation in CEO’s incentive plans that contrasts with objective stock price based measures may involve. Using complementary data evidence can be shown that individual performance evaluation increases growth opportunities (Bushman p. 161-193). An examination of the executive compensation structure of 153 randomly-selected manufacturing firms in 1979–1980 provides evidence supporting advocates of incentive compensation, and also suggests that the form rather than the level of compensation is what motivates managers and CEOs to increase firm value (Hamid p. 163-184). III. Data and Methodology Our data is a list of observations from 142......

Words: 1407 - Pages: 6

Free Essay

Degree or Not

...Writing an Argument Latasha Randle MGT/521 February 6, 2012 Dr. Marie J. Abram Writing an Argument A Masters of Business Administration (MBA) is a post graduate degree which focuses on Business Communication. The program focuses on providing its attendees with business knowledge, leadership abilities, networking opportunities, and career advancement. Although the intent of the program is understood, one must weigh the advantages and disadvantages when determining if pursuing an MBA is the right choice. Oftentimes, obtaining a degree is only seen in a positive light. However, there can be some hidden negative impacts to seeking a MBA. There are several factors I personally had to consider when deciding to enroll in an MBA program. The MBA program is recognized as the most sought-after postgraduate degree program (VanderMey, 2011). According to the Graduate Management Admission Council, the average starting salary ranges from $61,000 to $78,000 annually for recent MBA graduates (VanderMey, 2011). The thought of obtaining a highly sought-after degree and the earning potential were my first true reasons for desiring to be in the MBA program. On the contrary, the job market is currently in a downward spiral. This means that with an MBA degree, there is a likelihood of remaining underemployed or unemployed. According to recent statistics, college graduates are facing the highest unemployment rates in more than two decades (VanderMey, 2011). Another objection to earning...

Words: 943 - Pages: 4

Premium Essay

Econ

...ECON 11026 Assignment Item 1 . S0183732 Part A Q1ai) Article can be found in the following website : http://www.skynews.com.au/businessnews/article.aspx?id=738928&vId= The article ‘ Strong jobs figures put rate cut in doubt’ described that there is an increase in employment in the last one month which might help in putting hold to rate cut by Reserve Bank of Australia. There are positive signs in Australian job market with increase in 44000 employed people showing signs of recovery and better production levels. This will also increase private consumption giving rise to increased demand. Q1aii) This news article describes tradeoffs between interest rate cuts, inflation rate and unemployment rate. Q1aiii) First of all, this news article discusses the strong revival in the Australian job market seen in the month of March. More than 44000 jobs were created in the month of March across the nation which showed great signs of growth and production. It also says that unemployment rate is steady at the rate of 5.2 percent. The increase in number of jobs surpassed all the expectations of economists which estimated it to be 5000 in the month due to 15000 lost jobs in the month of February. Economists now estimate that due to strong job market and higher production levels, Reserve Bank of Australia (RBA) may undermine expected interest rate cuts. It had managed to keep cash rate at 4.25 percent but hinted at possible rate cuts in the month......

Words: 4435 - Pages: 18