Question

First Principles — End of Chapter Problem Describe some of the opportunity costs when you decide to do the following.

a. Attend college instead of taking a job Being able to find a better, more highly paid job after graduation
b. Developing a deeper understanding of concepts that will benefit you when you do eventually take a job
c. The income you would have earned on the job and the valuable on-the-job experience you would have acquired Foregoing the joy of learning

Answer 1

Answer:

First of all, opportunity costs are the costs of choosing one alternative activity or investment over another.

A) When you decide to attend college, you are going to pay a  lot money instead of working and being able to earn money right away. The opportunity costs of going to college are the lost wages and experience that you could have acquired at a job. Most people who attend college are willing to sacrifice lost wages (at least 4 years of lost wages) and working experience in order to have the possibility of obtaining a better paying job once they graduate.

Questions B and C are directly related to question A, there are no alternative actions presented.