Question

Vinny has a college degree while his best friend rick does not. based on recent estimates, vinny will make roughly______a year more than rick.

a) $5,000 to $10,000
b) $20,000 to $25,000
c) $30,000 to $35,000
d) $50,000 to $55,000

Answer 1

Vinny, with a college degree, will make about $30,000 to $35,000 more per year than Rick without a degree, reflecting the significant earning advantage that higher education can provide. The correct answer is option c).

Step-by-step explanation:

Based on recent estimates, Vinny, who has a college degree, will make roughly $30,000 to $35,000 a year more than his best friend Rick, who does not have a degree. A 2019 Federal Reserve report indicated that, on average, college graduates earn $30,000 per year more than non-college graduates, and this wage gap has nearly doubled in the past 40 years.

Moreover, the Bureau of Labor Statistics reported in 2020 that median annual earnings were $67,860 for those with a bachelor's degree compared to $40,612 for those with just a high school diploma, highlighting the financial benefits of higher education.