Chapter 36 — Quiz

Q1. Baumol's cost disease explains: a) Why tech products get cheaper b) Why service-sector costs (like college) rise faster than inflation c) Why manufacturing is expensive d) Why trade deficits grow Q2. The Bennett hypothesis says: a) College is worthless b) Federal aid may be partly captured by colleges as higher tuition c) Students are too entitled d) Education is a public good Q3. Housing affordability is primarily: a) A demand problem b) A supply problem (zoning, NIMBYism, missing middle) c) An interest rate problem d) A banking problem Q4. NIMBY stands for: a) New Income Makes Better Yields b) Not In My Back Yard c) National Institute for Market Balance Yearly d) None of the above Q5. The median first-time homebuyer age has risen from 29 (1980) to: a) 30 b) 33 c) 36 d) 42

SA1. Name the four explanations for rising college costs. SA2. Why is the "is college worth it?" question harder than it sounds?

TF1. College tuition has risen about 3× the rate of general inflation since 1980. (T/F — it's actually about 4×) TF2. Zoning reform has no effect on housing prices. (T/F) TF3. Student debt averages about $30,000 per borrower. (T/F)

Selected answers in appendices/answers-to-selected.md.