Answer to Question #152296 in Microeconomics for uzair qureshi

Question

After graduating from high school, if you have to choose between finding a job or
Enrolling at a college for more specialized training, what factors might you consider
When making your decision

Answer 1

In economics, decisions are made at the margin, implying that marginal costs and marginal benefits of a choice will be considered. The option with the highest net marginal benefit with be chosen against other options available. This concept will be applied in making the choices in question.

Firstly, marginal benefits and maginal costs of finding a job will be explored. Marginal benefits will include all costs saved (tuition, transport, food, stationary, accommodation, and more) by not enrolling at a college, immediate income obtained from a job, and experience gained from the job. Marginal costs will include the opportunity cost of not acquiring specialised training, which include foregone advantages of getting high paying jobs after finishing college, foregone high chances of getting managerial positions after finishing college, and foregone high salaries and allowances associated with the possible high job grade that tallies educational qualifications.

Secondly, the marginal costs and benefits of enrolling at a college will be considered. Marginal benefits will include benefits of acquiring specialised training, which include high chances of getting high paying jobs after finishing college, high chances of getting managerial positions after finishing college, and high salaries and allowances associated with the possible high job grade that tallies educational qualifications. However, marginal costs will include all costs: tuition, transport, food, stationary, accommodation, and more, associated with enrolling at a college. Also, foregone immediate income that could have been obtained from a job, and foregone immediate experience that could have been gained from a job.

Thirdly, marginal benefits will be weighed against marginal costs, for each option. The option with the highest net marginal benefit will be chosen against the other.