Tui University Eco201-Microeconomics Module 1 Case Assignment
1016 Words5 Pages
Module 1 Case Assignment
“And for man to look upon himself as a capital good, even if it did not impair his freedom, may seem to debase him... by investing in themselves, people can enlarge the range of choice available to them. It is one way free men can enhance their welfare.” (Theodore William Schultz) Education is the foundation in which people build upon as they grow older in age. From birth to death we are constantly adding to the repertoire of knowledge that one may obtain through the proper channels of learning. As we look at an education we can see that it is an investment, kind of like a bank account. We can put money in the bank and let it sit for long periods of…show more content… Opportunity costs are the difference in return between a chosen investment and one that is necessarily passed up. So, in other words many people decide to invest into their future by using the educational system to groom them and prepare them for the workforce, whereas some other may decide to place formal education on the hypothetical back burner and work to generate income and wealth. The question arises through, are these individuals who place education aside really earning wealth as far as what their true potential is? Maybe, maybe not, but nevertheless to say people who invest in their future by gaining a wealth of knowledge earn more, are better prepared to take on bigger challenges and are able to draw from their vast array of knowledge in given situations.
I do not believe that opportunity cost plays into the payment of tution while you are boosting your knowledge base. Opportunity cost as explained in the previous paragraph is difference in return between a chosen investment and one that is necessarily passed up. If you are attending college you are not passing up anything you are only gaining in the long run. Although, I can see where some individual’s may see where opportunity cost may play a part in the college experience for that fact that the money that is used to pay for tuition may be used to start a money market account, mutual fund, retirement funds and so on. Although all of these types of