Importance Of Opportunity Cost Of Higher Education

If you were to by chance walk into a normal, bland Economics 101 class, you are almost destined to overhear a professor speak about one of the most important cornerstones of basic microeconomics, opportunity cost. By definition, opportunity cost is what one forfeits in order to pursue something else. A big decision of life that exemplifies the exact definition of opportunity cost is when teenagers go to college. Instead of getting a job at a low level right out of high school, many of todays concerned teens are giving up their ability to immediately labor for income and instead go straight to college in hopes of obtaining a higher level occupation. The concerning question on the mind of unknowing newcomers to the real world is, however, if college is all that it’s built up to be. The fact is, if you look at attending college in the long run, the ability to conceal a high paying job by the time of graduating is very high, making the opportunity cost very worth it.

Opportunity cost as defined by Merriam-Webster.com retrieved March 23, 2016, from http://www.Merriam-Webster.com/dictonary/opportunity cost is “the added cost of using resources (as for production or speculative investment) that is the difference between the actual value resulting from such use and that of an alternative (as another use of the same resources or an investment of equal risk but greater return).” Opportunity cost can be defined as what you give up in order to do something, a choice between two things. Opportunity cost may be expressed in terms of anything which is of value to a person. Waggoner (2016), says that people have opportunity cost with every decision they make. An example is the time chosen to write this paper I gave up the time I

Opportunity cost means giving up something of value or importance to you to achieve a particular goal or outcome. It is a chance that causes you to miss out on something you want, but an individual can benefit by gaining something for the opportunity they accepted.

Opportunity cost can go botho ways, the way of going to college and the way of not going to college. The opportunity cost for not going to college is for example , someone does not go back to school after high school, but works right away. The other example is that someone goes to college and works, but the big difference is that the person going to college stays educated, learns as they go, and moves on while having a job, as for the person just working stays at the same level and even might move down a level for the fact that they are letting time go by . The opportunity cost is a big positive for the person that is going to college and staying

The economy will grow if the necessity of getting a higher education is reinforced. Education is the foundation of a country’s economic growth and the key to rid a nation of poverty. To illustrate, Japan is a country with no resources, but since it has a good educational system; Japan has the second richest economy worldwide. On the other hand, Nigeria is a country that is rich in resources, but low in education; as a result, the majority of people there are poor. A higher education creates a quality workforce,; besides it will promote economic stability by growing and training students for success. Such training will capacitate hard working people, which will do well to The United States economy. The government should invest more of its money on helping those students that cannot afford college. It will capacitate people who will

My opportunity cost for taking this course at ASUB consist of sacrifices that will benefit me in the future. Considering opportunity cost is the way to obtain more of one thing, causing society to forgo the opportunity of getting the next best thing. That meaning sacrifice is the opportunity of the choice. (McConnell, Brue, & FLynn, 2015) By taking this course I am sacrificing spending time with my friends and family so I can further my education.

As an illustration, according to the article “Opportunity Costs for Going to College,” “Opportunity costs are very important to consider when planning whether or not to go to college… [People] often don’t consider… the cost of giving up four years of income to attend college. Four years of income will often add up to more than the total cost of tuition and all the related expenses” (Blanchard). In other words, it is important to realize that going to college is highly expensive. Therefore, this is why many people argue that more than a benefit it seems as an investment not worth to students because they end up with more debts that what they are able to pay. On the other hand, many argue that in order to success in life a person should be well scholarly educated so they can contribute positive things to the world. Also, having an education wear them with the better arm to fight in life. For example, as stated in “Is a College Education Worth It?” “On average, a college graduate with a bachelor’s degree earned $30,000 more per year than a high school graduate.” In other words, the better you prepare yourself, the better you will

James J. Heckman, an expert in the economics of human development, states that, “quality early learning and development programs for disadvantaged children can foster valuable skills, strengthen our workforces, grow our economy and reduce social spending.” The benefits of quality early learning include: preventing the achievement gap, improving health outcomes,

The recession has demonstrated the social and economic affects of higher education on society, with the recession having a greater, negative, affect on individuals who attained lower levels of education . The unemployment rate in 2009 was lower, with higher average wages, for people who did not drop out of school and was successful with higher education . This is suggesting that education, beyond GCSEs, has become “essential” for 21st century careers . This is supported by the inflation of examinations being taken , which is reducing “the relative economic value” of the qualification . This means for stronger financial development in a career, more education is required – as well as experience in the field to stand out against other candidates.

The value of a college education is much needed to be successful in this harsh world. A college education will benefit your life economically and personally. Many people don’t see the value of a college education because all they see are the many numbers on the tuition cost, but the minimum wage you’ll have after you graduate will definitely make that up. Let’s begin to talk about the economic benefits.

the lowest levels of education have the highest rates of unemployment. So a stronger appliance of the educational system can steer society towards positive growth, centered around a successfully working unit that can produce better workers and create greater welfare. On the other hand, these workers will also create a more productive society that will eventually cause GDP per capita levels to increase, as well as economic expansion and the international status of the country in general. Education can very well create highly skilled workers, but that doesn’t eliminate the fact that the quantity of working positions

40,000,000 can be an extremely daunting number. This number is the approximate amount of people in the United States that owe a collective total of $1.2 trillion in student loan debt (Dynarski par. 1). They are only gigantic numbers on paper, but in real life, their meaning is life changing. People are struggling in ways that those viewing the numbers can barely fathom, and the effects are alarming. The cost of obtaining a higher education is showing problems for the people, the economy, and the future of America.

In the book it refers to opportunity cost. It gives an example about books and tablets. “… opportunity cost is what you give up when making an economic decision…If a society decides to produce more tablets, it gives up the ability to produce more backpacks.” (Chiang, 2008 p. 34). In opportunity cost something has to be given up to have more of a certain product. If the states give up money for college then they would most likely invest that money elsewhere. However, in some schools, money is given to the educational facility for the number of students that they have or that attend for that day. If the price is reduced for college then chances are attendance will be extremely high. If more students attend then the money that they will receive

Youth today must be willing to close cultural gaps with an adhesive of understanding. By examining hurtful stereotypes and eliminating them, my generation can create a non-judgmental environment which will ultimately lead to less violence. This would be a cross-generational effort, as certain generalizations can create division within different age groups. Young people often fall victim to the stereotype of being entitled, when there are more teenagers participating in community service work than ever before. With the raising costs of college education, students today must work harder and accrue more debt in order to receive an education. Like previous generations before them, young people want a bright future and the freedom to pursue their

Define the opportunity cost of getting your degree by analyzing what steps and economic factors a potential student must make when choosing to pursue an education. Given your answer, is getting a formal college education worth your opportunity costs? Why?