The Educationally Economic What Ifs(The Opportunity Costs of College) <br />Cheryl Bennett<br />ECO 100<br />Professor Van...
	Opportunity costs are the equivalent of a person’s hindsight of the effects of their decisions. Much like the effects of ...
Those material things like money, and/or intangible items like time that people are willing to give up in order to gain so...
What are the opportunity costs of not going to college?<br />(getting a college degree)<br />
<ul><li>Allows people to broaden their global and social networks by:
Introducing different cultures to one another
Encouraging civil intermixing of different religions and customs
Opening beneficial networking amongst new peers
Showing other available career options</li></ul>One<br />
Allows people to obtain the opportunity to gain a better income-producing job<br />Some job positions are only available t...
Allows people to become more productive members of their communities because: <br />They acquire new, enhanced, and/or pol...
Opportunity costs of attending college<br />(Not getting/having/wanting a college degree)<br />
<ul><li>More time available for one’s self, friends, family, and fun activities
Less stress from studying, researching, and class projects
Low risk of feeling inept in comparison with other students’ grades.</li></ul>Non-monetary opportunity costs<br />
<ul><li>No large school loan debt(s) to pay off
Already have a stable job and income
Satisfaction with one’s life style and income level</li></ul>Financial opportunity costs<br />
<ul><li>Less than adequate financial/familial support to attend college like:
Excessively low household income (poverty)
High family responsibility and pressure to work instead of going to school
Severe health issues
Personally unmotivated to apply for, attend a, or complete a college
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Educationally economic what ifs

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Educationally economic what ifs

  1. 1. The Educationally Economic What Ifs(The Opportunity Costs of College) <br />Cheryl Bennett<br />ECO 100<br />Professor VanWilligen<br />June 28, 2010<br />
  2. 2. Opportunity costs are the equivalent of a person’s hindsight of the effects of their decisions. Much like the effects of marginal costs upon the marginal benefits of a choice the opportunity costs of any decision can sway a person’s final decision between multiple choices. The benefits of going to college outnumber the financial, energy, and material costs it takes to pursue a degree.<br />The Educationally Economic What Ifs(The Opportunity Costs of College) <br />
  3. 3. Those material things like money, and/or intangible items like time that people are willing to give up in order to gain something else they deem more satisfying (Brue, Mcconnell, & Flynn, 2010, p. 479). <br />Opportunity Costs<br />
  4. 4. What are the opportunity costs of not going to college?<br />(getting a college degree)<br />
  5. 5. <ul><li>Allows people to broaden their global and social networks by:
  6. 6. Introducing different cultures to one another
  7. 7. Encouraging civil intermixing of different religions and customs
  8. 8. Opening beneficial networking amongst new peers
  9. 9. Showing other available career options</li></ul>One<br />
  10. 10. Allows people to obtain the opportunity to gain a better income-producing job<br />Some job positions are only available to those who have a college degree<br />Can lead to promotions in a current career <br />Increases the starting wage salary at a new job<br />Two<br />
  11. 11. Allows people to become more productive members of their communities because: <br />They acquire new, enhanced, and/or polished social and problem-solving skills<br />They gain more knowledge about new technologies<br />They gain helpful tools/talents to become a greater asset to their company, employer, co-workers, friends, and family<br />Three<br />
  12. 12. Opportunity costs of attending college<br />(Not getting/having/wanting a college degree)<br />
  13. 13. <ul><li>More time available for one’s self, friends, family, and fun activities
  14. 14. Less stress from studying, researching, and class projects
  15. 15. Low risk of feeling inept in comparison with other students’ grades.</li></ul>Non-monetary opportunity costs<br />
  16. 16. <ul><li>No large school loan debt(s) to pay off
  17. 17. Already have a stable job and income
  18. 18. Satisfaction with one’s life style and income level</li></ul>Financial opportunity costs<br />
  19. 19. <ul><li>Less than adequate financial/familial support to attend college like:
  20. 20. Excessively low household income (poverty)
  21. 21. High family responsibility and pressure to work instead of going to school
  22. 22. Severe health issues
  23. 23. Personally unmotivated to apply for, attend a, or complete a college
  24. 24. Unwillingness to expend the effort necessary to attend classes, study, and/or graduate
  25. 25. Family members and peers are uneducated
  26. 26. Family members and peers do not value higher education</li></ul>Other financial opportunity costs<br />
  27. 27. What are the marginal costsof attending college?<br />(What does it take to go to college?)<br />
  28. 28. The additional financial expenditure, time, and/or physical exertion expense of one choice in comparison with another choice (Brue, Mcconnell, & Flynn, 2010, p. 477).<br />Marginal Cost<br />
  29. 29. College is expensive and contains many of these expenses:<br />Tuition fees<br />School supplies <br />Books and equipment expenses for classes<br />Dorm fees/cafeteria fees if on campus<br />Internet connection fees for online college attendance<br />Some of the marginal costs<br />
  30. 30. Time spent away from family and friends<br />Commuting or traveling to and from campus, home, and/or job<br />Foregoing getting a job in order to graduate faster <br />Working fewer hours in order to study and attend classes<br />Four or more years of classes, studying instead of playing, and financial debts<br />Other marginal costs<br />
  31. 31. What are the marginal benefitsof attending college?<br />(Why is college worth the cost?)<br />
  32. 32. The extra gratification and/or satisfaction that is acquired from procuring one choice over another choice (Brue, Mcconnell, & Flynn, 2010, p. 477).<br />Marginal Benefit<br />
  33. 33. Increased self esteem<br />Better self image to prospective employers<br />Higher salary<br />Increased chances for job promotions<br />Higher entry level positions<br />Increased academic knowledge and technological knowledge <br />Polished social skills, crisis-handling skills, life skills, and unique talents<br />The marginal benefits<br />
  34. 34. How to choose “A” over “B”<br />(How does one know if the benefit of college outweighs its cost?)<br />
  35. 35. If the marginal benefits outweigh the marginal costs of a decision a person will have anincreasedsense of self satisfaction with their decision.<br />Benefits > Cost<br />b<br />c<br />
  36. 36. If the marginal costs outweigh the marginal benefits a person will have a decreasedsense of self satisfaction with their decision.<br />Cost > Benefits<br />c<br />b<br />
  37. 37. To graduate or not to graduate is a tough decision for anyone to make without knowing why it is necessary or desirable to pursue a college degree. It is true that a degree can open the door to a better financial future, but it is not always an easy doorway to walk through. Even though there are obstacles that every potential student needs to overcome, the benefits of the college experience and its diploma can make the journey worthwhile.<br />
  38. 38. References<br />Brue, S., Mcconnell, C, & Flynn, S., (2010.) Essentials of<br /> Economics. McGraw hill: NY<br />

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