Question

2) After graduation, suppose you are deciding between getting a job as a systems administrator (listed as one of the best jobs for business majors) or going to law school. Because this is the real world and not the land of economic theory, you do not know how much you will earn for every year of your life with the law degree or the BA. Instead, you look at median salaries reported in Bureau of Labor Statistics data. You see the median pay for someone with a BA working as a systems administrator is $80,000 and the median pay for someone with a JD is $135,000. It might be tempting to conclude if you go to law school, you will earn $55,000 more than if you do not. For the following scenarios, answer whether that estimate is likely to be just right, biased high or biased low. Explain. a) Legal jobs offer more stability for workers than most jobs requiring only a BA. b) Anyone with the analytical skills required to become a lawyer would also excel in any job requiring only a BA. c) Some people make good lawyers and other people make good systems administrators, and you are naturally gifted at systems administration.

Answer 1