Answer to Question #252343 in Microeconomics for nobaa

Question

John is 19 years and is an actor in a soap opera, “One Life to Burn.”  He earns One Million pesos a year.  Josh is also 19 years and works in local fast food.  He earns 380 pesos a day.   Which of the two persons is more likely to attend college and for what reason? economic explanation.

Answer 1

Annual income of:

John= 1,000,000 pesos

Josh=380×365=1,38,700 pesos

Source of income:

John is an actor in a soap opera "One life to burn"

Josh works in a local fast food

From the above analysis, we can say that the income of john is much higher than josh. John is an artist is earning decent income. Also, he is more likely to get opportunities that may offer him higher income. Now, income of Josh is less than the income of josh. Also, he may attend the college to get higher income opportunities. This is because his current job doen not provide him higher income opportunities. Thus, the opportunity cost of attending college for John is too high and low for Josh. Therefore, Josh is more likely to attend the college