...Week 2 Assignment: Raise or Lower Tuition? ECO 204: Principles of Microeconomics August 10, 2014 For this week’s assignment we have to assess how to increase the total revenue for a university by raising or lowering the tuition. As a consultant hired to help Nobody State University, I will assist in helping the university find the appropriate solution to help the university survive by changing the cost of tuition. Assess a raise in tuition and if it will necessarily result in more revenue. Raising the tuition at the university would not necessarily result in more revenue. When the price of tuition increases it will cause students to drop out; if the school is trying to keep the same number of students enrolled this will be a problem. However, if they are looking to decrease their enrolment while still increasing their tuition cost they could see an increase in revenue but not much. I would see the university’s goal as getting the most amounts of students to pay the higher tuition fees. Describe the conditions under which revenue will (a) rise, (b) fall, or (c) remain the same. Price determination is a difficult decision; one that should establish a tuition that retains current students, attracts new students, and provides adequate revenues to cover costs. (Byran & Whipple, 1995) Rise Conditions under which revenue will rise would be if the enrolment of students remains the same and rises. The university will have look at other factors that will make their...
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...for children in school or people that are unable to work in the working environment. I think that if Obama raises minimum wage then people will not care that they don’t have an education and take the jobs that, for example, a first job for a teenager would work. I believe that if minimum wage is raised to $10.10, than people will not attend college to get the degree, but will still be making a decent amount of money that one of the lowering paying jobs make but require a degree. From this assignment I learned that there is a lot going on in the government that I am not fully aware of. Although, I have my opinions on what I think should happen, I did not realize that Obama was taking action on these things. I learned that I need to pay attention more to the government because I do feel strongly about raising minimum wage, I do not want this to happen. I learned that Obama is trying to make college more affordable after one graduates, so they don’t have so much student loan. But what I am afraid of with lowering student loans is the price of tuition going to increase? I think that if Obama is trying to lower student loans then...
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...college. Since tuition has been increasing every year, more and more students drop out because they cannot afford to pay for the tuition. Another issue the United States deals with is minimum wage. Increasing the minimum wage could help a large number of Americans backing their families and reduce dependence on government support. Student loans and minimum wage should increase to help the low income families with more opportunities even though student debt and minimum wage hold the economy back. Student loan debt is a big issue in the United States. Actually, 37 million Americans as...
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...Instructor: Christine Villasenor July 7, 2013 Introduction Initiating tuition costs at Universities and Colleges can be of an essential importance to college institutions who may be suffering from unfavorable financial effects because of the lack of resources that are being distributed and the increase of education and faculty costs. However; with the increasing cost of tuition, this can have parents wondering if the investment of higher learning is worth it, especially when the costs of college exceeds what a student can make in their first year of working. Can Universities find alternate ways to increase their revenue, other than raising tuition? There are many ways institutions can make more revenue, they just need to collaborate their minds and resources to do so. Nobody State University increases their tuition, hoping to get more revenue, is it a wise decision for administration? In this paper I will go over conditions in which revenue may rise, fall, or remain the same, focusing on the relationship between the increase and decrease of revenue from student enrollments and possible ways to expand their revenue, outside of raising tuition. Well there are many reasons why colleges raise their tuition to increase their revenue, as I will discuss in this paper. Raising Tuition Was it a good decision for NSU to raise tuition costs, well according to their administration it was. Raising tuition for this University was a way for them to increase their revenue, in which...
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...hard work and dedication to good grades in high school, you had high hopes that you would be able to get into an Ivy League school. The American dream of being able to go to college to get a degree is sliding away from many people due to rising costs. With increasing tuition prices and job loss, the college dream is slowly and surely slipping away from many students and their families. The first step in the college process is to be able to afford the tuition and other expenses. Many families are unable to do so by themselves and depend on the help of financial aid and loans. Financial aid has recently been harder and harder to come by and loans are now harder to get. In 2000, the average gap between a financial aid offer and a family?s ability to pay for college tuition was $3,000.00. Since then, tuition has risen twenty one percent and shows every sign of continuing to rise with inflation (U.S. News and World Report, 53). If federal aid and federal loans are not easily accessible to families, how are they supposed to send their children to college? The financial aid system is meant to help needy students and their families, but the system is cracking under the strains of our economy and the expensive tuition costs of many colleges (U.S. news and World Report, 53). Without the help of financial aid, families who earn less then $30,000 with some debt were granted less by financial aid than had been given out in 1993 (Philadelphia Inquirer). Pell grants only cover 33% of the...
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...Setting Tuition and Financial Aid by Ronald J. Sanders HCM-540, MBOL5, Health Care Organization Instructor: Wenyuan Teng Saint Leo University Distance Learning November 3, 2013 Abstract A college board in Pennsylvania has increased its tuition and fees to the amount of $23,460; a 17.6 increase from the previous year. An increase of 200 additional students inquired to further their education at the college than the prior year. Most college presidents would attribute this to students believing the college is better if the cost is more. Like other major colleges such as Rice University, University of Richmond and University of Notre Dame, the perception is students of prestigious schools believe costs are related to a better education. To contrast this, 10 years ago, North Carolina Wesleyan College reduced it cost of tuition and fees by 22 percent and watched its number student application fall. Recommendations to resolve the school’s cash flow problems may include the future increase of tuition and fees. This case study deals with the managerial decision of setting tuition and financial. Many factors are associated with demand and price elasticity of demand. There is an economic relationship between demand and price? After reading this paper, student will have a better understanding of those things that may affect tuition and fees for colleges. Introduction An individual can demand so many things. The concept of demand can be easily explained. Every...
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...Nobody State University Tuition Universities must constantly weigh tuition pricing in relation to the cost of providing quality educational services. Determining where to set tuition pricing is an increasingly critical decision which administrators and university presidents must analyze when considering the university’s goals. Not only does the cost of tuition play a factor in student enrollment, it also provides a major revenue source to an institution. The question which universities must answer is, “What effect will raising or lowering the university’s tuition have on the total earned revenue? This paper investigates this question and reviews under what conditions a change in tuition prices will cause the revenue to rise, fall, or remain constant. Finally, applying a hypothetical tuition elasticity coefficient of demand for education value of -1.2, provides a tuition increase recommendation to the Nobody State University’s president and administration board based upon the university’s potential revenue impact. Historically, the demand for a university or college education has not reduced as prices have risen. In fact, even though prices have gone up, the number of college applicants has continued to rise. Meagan Pant writes in her article in the Tribune Business New, “The majority of Americans think college is too expensive for most people to afford -- although the widely held opinion has not hindered skyrocketing enrollment or stopped virtually all parents from expecting...
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...RAISE OR LOWER TUITION 2 Nobody State University is looking for someone like me to help increase the revenue for their schools. Schools like Nobody State University has seen many battles between helping a student get an education or fallen because of the government is raising taxes on tuition or lowering tuition. It is hurting millions of students that are attending here and it is my job to help find ways to increase the tuition instead of lowering it for students that can’t pay out of pocket expenses. The purpose of this is to find ways to improve the increase in revenue and answer the following questions that Nobody State University wants me to help resolve this issue. 1. Assess a raise in tuition and if it will necessarily result in more revenue. 2. Describe the conditions under which revenue will (a.) rise, (b.) fall, or (c.) remain the same. 3. Explain the process of revenue at NSU, focusing on the relationship between the increased revenue from students enrolling at NSU despite the higher tuition and the lost revenue from possible lower enrollment. 4. If the true price elasticity were (-1.2), discuss what you would suggest the university do to expand revenue. 5. Using what you have learned in this course, explain how you would resolve this problem if you were the President of NSU. RAISE OR LOWER TUITION? ...
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...lives vary, countless other problems may be produced in a variety of ways. The college cost ought to be lowered for the reason that it compels a heavy burden to both the children and parents, causing some students to change their preference of the college to go to, and puts off some students from even attending college. Ensuring the cost of college is kept at an affordable level will open wide-spread educational opportunities to those otherwise unable to attend institutes of higher learning. It may be unclear to what the literal reason may be, for the continued rising of college tuition rates, or the reason why tuition rates may be rising higher and faster than the rates of inflation. So as to establish the cause of rising cost of college, it may be important to study a number of aspects that may be tied into the cost of college increasing. The problem may be clear; owing to colleges raising their tuition rates, every year, at a very alarming rate (roughly 7%); numerous high school learners who may be looking further to purse a higher education may not have the ability to do so. Moreover, given that they find means to finance this debt, they may be faced with the veracity of the rates of interest of the private student loans offered to them. Even more...
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...college' cannot actually be free, the money needs to come from somewhere. Who is going to pay for it? (Throndsen) By slightly raising taxes on citizens, who would be benefiting from free education, much of the cost of tuition would be handled. The jobs becoming more achievable would also circulate more money, earning the government more tax revenue ("Should College be Free"). This money could contribute greatly in paying for tuition costs. The U.S. could cover the remaining tuition by lowering the military's budget from its absurdly large number. Currently, more than $601 billion is being spent on the military in the United States, that amount is more than the next seven highest spending countries combined (Throndsen). As Throndsen suggests in his article, "if the government and taxpayers were to pay for public universities and colleges, there would be more inspection into where tuition money is going." Less money would be spent on costly items that are not necessary. The government, of course, would have high expectations of all students who plan to attend college. If students want the government to pay for tuition, it could be mandatory for them to maintain a certain GPA to continue receiving this privilege. They would also be expected to graduate within four years to abstain from further spending. These are...
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...Kwan Ho Derrick Lui Macro Economics Professor Chartier 10/25/2004 Bush and Kerry under the Four Economic Issues As the presidential election date is approaching, it is time for Americans to make the important decision on whether to vote for Senator Kerry or President Bush. This decision may very well depends on the individual as the elected candidate will cause a different impact for each American. This essay will examine the position and programs of each presidential candidate under the four main economic issues in the United States: healthcare, taxation, international trade and environment policy. The first economic issue is Healthcare. As we all know, healthcare cost in the United States is comparatively more expensive than other countries. This is also the reason why many workers in the United States require healthcare benefits. Cost in healthcare is simply too high for an average American to afford if anything happens to them and therefore, many people purchase health insurance. However, having health insurance does not solve the high cost in healthcare because premiums are expensive and not all could afford it. Senator Kerry plans to reduce the cost of health insurance, health care bills and medicine, as well as improving medical efficiency to cut administrative cost. He asserts to cut premium costs by reimbursing business for 75 percent of the cost of catastrophic care since a single catastrophic case can raise the price of health insurance dramatically...
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...its present state, and that can never be done just by asking a few teachers about it or reading a few articles on newspapers and magazines. By all means it is a much more complex job and deserves delicate and careful handling. Until one can find out the root cause, any proposal for remedy seems useless. The prime factors on which the quality of education in general depends are the quality of teachers, the quality of students and the quality of the teaching courses. The other factors are the academic environment and teaching aides (including library, communication facilities etc). But that being said, access to higher education is the most important piece of the puzzle. Because of limited number of seats in public universities, and high tuition fees charged by the private universities, access to university education is rather limited in Bangladesh. Degree colleges that account for the lion’s share of enrolment at the higher level of education in Bangladesh,...
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...shown in previous research a relationship between tuition fee and student enrollment exists, this study focusses on this relationship moderated by government aid and career expectations. By manipulating these variables in a questionnaire with vignettes all other variables able to influence this relationship are controlled as much as possible. Results suggest that a variation in both government aid and career expectation influence students’ decision to enroll both for their first study as for a further study after graduation. The effect of career expectations seems to be the most crucial on a student’s enrollment choice. How career expectations, tuition fees and government aid impact student enrollment Education in all its forms is one of the fundamental elements of societies. By educating people a society can function and develop. This is especially the case in western countries in which knowledge, which can be acquired through education is of crucial importance. The need for high educated persons is of great importance for western countries such as member states of the European Union. The importance of higher education is reflected in strategies launched by the European Union (Rodriguez, al, 2010; European Commission, 2010), aiming towards a knowledge economy and becoming more competitive in future years. This vision is also being shared outside the European Union (Yang, 2011). The tuition fees in the Netherlands are rising and government...
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...International Trade Speech Good evening ladies and gentlemen: Today we will discuss the United States economy by addressing the effects of import surpluses and regulation, effects of international trade on GDP, domestic markets, and university students, tariffs, quotas, and foreign exchange rates. Imports may come from any country. Surplus of Imports When a surplus of imports is allowed to enter the U.S., the prices of those imports decline due to a decrease in demand. Companies may be forced to sell those goods at reduced prices which will decrease profits and stability. As of December 2012, U.S. food exports totaled $133 billion and imports totaled $110 billion ("Food Safety News", 2013). Currently, the U.S. has an increasing trade deficit in fresh fruits. Cranberry growers in the United States are battling steep surpluses and declining prices, along with increased competition from Canadian and overseas producers ("Fruit Growers News", 2013). GDP and International Trade, Domestic Markets, and University Students Increasing U.S. exports and imports may have beneficial and detrimental effects on the economy. Exporting goods and services from our country will create income here at home, which supports GDP. In contrast, imports create income for foreign countries. Ultimately, the goal in international trading should be decreasing the gap between the import and export percentages while supporting economic. The same applies to the way in which international trade affects...
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...1. If a decrease in the price of football tickets increases the total revenue of the athletic department, this is evidence that demand is: A) price inelastic. B) price elastic. C) unit elastic with respect to price. D) perfectly inelastic. 2. If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is: A) perfectly elastic. B) perfectly inelastic. C) elastic. D) inelastic. 3. Suppose the president of a textbook publisher argues that a 10 percent increase in the price of textbooks will raise total revenue for the publisher. It can be concluded that the company president thinks that demand for textbooks is: A) perfectly inelastic. B) elastic. C) unitary elastic. D) inelastic. 4. If the quantity of tickets to the fair sold decreases by 10 percent when the price increases by 5 percent, the price elasticity of demand over this range of the demand curve is: A) price elastic. B) perfectly inelastic. C) unitary elastic. D) price inelastic. 5. There is no change in total revenue when the demand curve for a good is: A) inelastic. B) perfectly inelastic. C) unitary elastic. D) elastic. E) perfectly elastic. 6. Elasticity refers to the: A) responsiveness of quantity demanded to changes in the price of a good. B) minimum amount that consumers will pay for a percentage change in quantity demanded or supplied. C) percentage decrease in price in response to a percentage increase...
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