Friday, October 5, 2012

Topic 6: Opportunity Cost of a College Education



In economics, people use marginal analysis to make good decisions to find out the marginal costs and marginal benefits. For example, when some people are deciding whether to have a one more year of higher education, they might look at both the marginal costs and marginal benefits. The marginal costs might be another year of tuition, the loss of having a full time job, study all day long, and not enough free time to do their own things. However, there must have some marginal benefits too. For example, people might get more knowledge, make new friends, and getting a better job in the future by having one more year of higher education.
Is it true that college graduates earn one million dollars more in their working lives than non-graduates? It might not be true, because there are some minorities who earn a lot of money, which eventually ruin the average of the data.
Some students leave college after one year, because they might think it’s not going to benefit them that much in college as going to work. However, leaving college after one year might not actually let people to get good jobs. It’s risky by doing that.
My parents always tell me that in order for me to succeed in the future, I have to work hard and get into a good college. However, what is contradicting is that my parents didn’t have a high education, but they still succeed. 

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