Question

Chan Applying Economic Concepts 1-1 (p. 6). The Opportunity Cost of Your University Degree The opportunity cost of choosing one thing is that you would have received had vou taken that job what must be given up as the best alternative Computing Suppose your aller-tax) annual earnings would have the opportunity cost of a college or university education been $25 000 per year, for a total of 100 000 if you had is a good example to illustrate which factors are included stayed at that job for four years to the direct expenses in the computation of opportunity cost You may also be of $32 000, we must therefore add SIOD OKO for the surprised to learn how expensive your university degree earnings that you gave up by not taking a job. This brings really is! the true cost of your university degree -- the opportunity cost - up to $132. Notice that the cost of food. Suppose that a bachelor's degree requires four lodging, clothing, and other living expenses did not enter years of study and that each year you spend $6500 for the calculation of the opportunity cost in this example tuition fees - approximately the average at Canadian universities in 2019 - and a further $1500 per year for The living expenses must be incurred in either case - Whether you attend university of get a job books and materials Does this mean that the cost of university education is only $32000? Unfortunately not. If the opportunity cost of a degree is so high the true cost of a university degree to a student is much why do students choose to go to university? May be higher Students simply enjoy learning and are prepared to incur the high cost to be in the university environment or The key point is that the opportunity cost of a maybe they believe that a university degree will university education does not include just the out-of- significantly increase their future earning potential in pocket expenses on tuition and books. You must also take into consideration what you are forced to give up by this case, they are giving up four years of earnings at one salary so that they can invest in building their skills in the choosing to attend university. Of course, if you were not hope of enjoying many more years in the future at a studying you could have done any one of a number of considerably higher salary things, but the relevant one is the one you would have chosen instead your best alternative to attending Whatever the reason for attending college or university university, the recognition that a post-secondary degree is very expensive should convince students to make the Suppose your best alternative to attending best use of their time while they are there university was to get a job. In this case, the opportunity cost of your university degree must include the earnings a Read the article above and answer the following questions What is your opportunity cost in pursuing higher education in Canada? b In vour perspective is Canadian post-secondary education worth your investment? Why or why not? Other than getting a job, name two other possible comparable alternatives to attending university d If tuition this year costs $10,000 and working at an entry level job pays $2.500 each month, then what is the opportunity cost of pursuing this year's education? If the opportunity cost of Canadian post-secondary education is so high, then what are some reasons that international students still choose Canada for their education? 5. Please watch "Supply and Demand Explained in One Minute" by One Minute Economics on YouTube at the following link a In your own words, explain what you think supply and demand is b. Let us consider the market for hand sanitizers. How has the pandemic affected the supply and/or demand of this good in Canada? What do you think will happen to the supply and/or demand for hand sanitizers when a vaccine for the coronavirus is developed and proven to be effective c.

just need the answer of question 4th

Answer 1

4.

a. Opportunity cost is the cost of the next best alternative that was given up to choose an action. For example, if a girl goes for shopping and gets confused between two dresses as for which one to buy. She can have either one of them. So the dress she does not choose is the opportunity cost for the one she chooses.

According to the above paragraph in the question, the opportunity cost of persuing higher education in Canada is the earnings we would have received if we took a job instead.

b. The Canadian post-secondary education requires a huge investment. So in order to determine whether it is worth it or not, we can first make an assessment of the earnings we would get post completing the degree in long run and then compare it with the opportunity cost i.e. the benefit foregone. Then we can select the option for persuing the degree if it's value after completing the degree covers the opportunity cost, or else the post-secondary higher education is not worth it.

c. Other than getting job, two other alternatives to attending college is investing the money in any financial instrument that would provide us return and using the money to buy machines to start a business of your own.

d. The opportunity cost for persuing education would be the earning lost from the job during the year. So, the opportunity cost should be $ 30,000 ( $ 2,500 * 12).

e. Even after the high opportunity cost for Canadian post-secondary higher education, students still choose it because of a number of reasons:

1. The students want to enjoy learning. They want to gather knowledge and experience the college life. In order to experience all of this, they are willing to pay the high fees for college.

2. The students may be positive that post completion of their degree, they aould get a job that would pay them much higher than if they take a job currently without degree. So, the degree although expensive will add value to their future earnings.