Answer to Question #170502 in Microeconomics for desmond

Question

what is the economic thinking behind going to school or going into job markets

Answer 1

This situation includes the choice between two alternatives. Choice among alternatives is an economic problem on which the whole economics is based. This suggests that every resource has many alternate uses but resources are limited and the problem of choice exists because of the scarcity of resources.

In this situation, the person involved is the resource which has two alternatives - to go to schoo lfor and to enter into job market after graduation. The alternative which will not be chosen will be the opportunity cost for that person.