Use cost benefit analysis to explain the decision whether or not to attend college. Why do some people choose not to attend college?
What will be an ideal response?
The decision whether or not to attend college is based on a comparison of the costs and benefits associated with attending college. The benefit of attending college is the extra earnings that result from a college education. The costs of attending college include tuition, board and books. An important opportunity cost of attending college is the lost opportunity to earn income by working instead of attending college. For people who decide to attend college, the benefits exceed the costs, including the opportunity cost of lost wages. Some individuals will decide not to attend college if they perceive that the benefits will not exceed the costs. For some individuals, such as Bill Gates and LeBron James, the opportunity cost of attending college is so high that the costs exceed the benefits, so they rationally choose not to attend (or finish) college.
You might also like to view...
You would be willing to pay a maximum of $1000 for an airplane ticket to London, UK during the summer, and you can buy an airplane ticket for $890. Your consumer surplus is:
A) $190. B) $110. C) $100. D) $90.
Under perfect competition and monopolistic competition, profits are zero in long-run equilibrium
a. True b. False Indicate whether the statement is true or false
The technique used to calculate the CPI implicitly assumes that consumers buy
A) relatively more of goods with relative prices that are increasing. B) goods and services whose quality improves at the rate of growth of real GDP. C) relatively less of goods with relative prices that are decreasing. D) more computers and CD players and fewer black -and-white TVs. E) the same relative quantities of goods as in a base year.
Euro-pessimists point out that:
A) rates of economic growth and inflation have converged to abysmally low levels in all Eurozone countries. B) there are still wide differences in rates of economic growth and inflation among Eurozone countries. C) the euro has appreciated considerably against the U.S. dollar. D) inflation rates have converged, but rates of economic growth have diverged among Eurozone countries.