The Costs of Obtaining a College Degree for High-Productivity and Low-Productivity

Multiple Choice

The costs of obtaining a college degree for high-productivity and low-productivity workers are as follows:
High productivity: C_H = $20,000y
Low productivity: C_L = $40,000y
Where y is years in college. Suppose workers with a college degree are paid a lifetime income of $600,000, and workers without a college degree are paid a lifetime income of $450,000. For low-productivity workers, the net benefit of four years of college is _____, while the net benefit of not going to college is _____.

A) $500,000; $150,000
B) $440,000; $450,000
C) $150,000; $40,000
D) $600,000; $120,000