For most young people, working full-time and going to school are substitutes: You tend to do one or the other. When it's tough to find a job, does that raise the opportunity cost of going to college or does it lower it? When it's tough to find a job, does the demand for college rise or fall?

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Business

Korbin Combs

11 March, 00:57

For most young people, working full-time and going to school are substitutes: You tend to do one or the other. When it's tough to find a job, does that raise the opportunity cost of going to college or does it lower it? When it's tough to find a job, does the demand for college rise or fall?

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Answers (1)

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Jacquelyn Whitaker · Answer 1

The answers are:

It lowers the opportunity cost of going to college The demand for college rises.

Explanation:

The opportunity cost can be defined as what you lose because when decide to choose a different alternative.

In this case going to college means losing the possible revenue (salary) you can get by working. If you can't find a job, then your possible (salary) decreases, so the cost of opportunity of going to college lowers. Therefore the demand for attending college increases.