The Educationally Economic What Ifs(The Opportunity Costs of College)

Cheryl BennettECO 100Professor VanWilligenJune 28, 2010

Opportunity costs are the equivalent of a person’s

hindsight of the effects of their decisions. Much like the effects

of marginal costs upon the marginal benefits of a choice the

opportunity costs of any decision can sway a person’s final

decision between multiple choices. The benefits of going to

college outnumber the financial, energy, and material costs it

takes to pursue a degree.

The Educationally Economic What Ifs(The Opportunity Costs of College)

Those material things like money, and/or

intangible items like time that people are willing

to give up in order to gain something else they

deem more satisfying (Brue, Mcconnell, & Flynn,

2010, p. 479).

Opportunity Costs

What are the opportunity costs

of not going to college?(getting a college degree)

Allows people to broaden their global and social

networks by: Introducing different cultures to one another

Encouraging civil intermixing of different religions and

customs

Opening beneficial networking amongst new peers

Showing other available career options

One

Allows people to obtain the opportunity to gain a

better income-producing job

◦ Some job positions are only available to those who have a

college degree

◦ Can lead to promotions in a current career

◦ Increases the starting wage salary at a new job

Two

Allows people to become more productive members

of their communities because:

◦ They acquire new, enhanced, and/or polished social and

problem-solving skills

◦ They gain more knowledge about new technologies

◦ They gain helpful tools/talents to become a greater asset to

their company, employer, co-workers, friends, and family

Three

Opportunity costs of attending

college

(Not getting/having/wanting a

college degree)

More time available for one’s self, friends, family,

and fun activities

Less stress from studying, researching, and class

projects

Low risk of feeling inept in comparison with other

students’ grades.

Non-monetary opportunity costs

No large school loan debt(s) to pay off

Already have a stable job and income

Satisfaction with one’s life style and income level

Financial opportunity costs

Less than adequate financial/familial support to attend college like:

Excessively low household income (poverty)

High family responsibility and pressure to work instead of going to school

Severe health issues

Personally unmotivated to apply for, attend a, or complete a college

Unwillingness to expend the effort necessary to attend classes, study, and/or

graduate

Family members and peers are uneducated

Family members and peers do not value higher education

Other financial opportunity costs

What are the marginal costs of

attending college?(What does it take to go to

college?)

The additional financial expenditure, time, and/or

physical exertion expense of one choice in

comparison with another choice (Brue, Mcconnell,

& Flynn, 2010, p. 477).

Marginal Cost

College is expensive and contains many of these

expenses:

◦ Tuition fees

◦ School supplies

◦ Books and equipment expenses for classes

◦ Dorm fees/cafeteria fees if on campus

◦ Internet connection fees for online college attendance

Some of the marginal costs

Time spent away from family and friends

Commuting or traveling to and from campus, home, and/or

job

Foregoing getting a job in order to graduate faster

Working fewer hours in order to study and attend classes

Four or more years of classes, studying instead of playing,

and financial debts

Other marginal costs

What are the marginal benefits

of attending college?

(Why is college worth the cost?)

The extra gratification and/or satisfaction that is

acquired from procuring one choice over another

choice (Brue, Mcconnell, & Flynn, 2010, p. 477).

Marginal Benefit

Increased self esteem

Better self image to prospective employers

Higher salary

Increased chances for job promotions

Higher entry level positions

Increased academic knowledge and technological knowledge

Polished social skills, crisis-handling skills, life skills, and unique

talents

The marginal benefits

How to choose “A” over “B”(How does one know if the benefit

of college outweighs its cost?)

If the marginal benefits outweigh the marginal

costs of a decision a person will have an

increased sense of self satisfaction with their

decision.

Benefits > Cost

b

c

If the marginal costs outweigh the marginal

benefits a person will have a decreased sense of

self satisfaction with their decision.

Cost > Benefits

b

c

To graduate or not to graduate is a tough decision for

anyone to make without knowing why it is necessary or desirable to

pursue a college degree. It is true that a degree can open the door

to a better financial future, but it is not always an easy doorway to

walk through. Even though there are obstacles that every potential

student needs to overcome, the benefits of the college experience

and its diploma can make the journey worthwhile.

ReferencesBrue, S., Mcconnell, C, & Flynn, S., (2010.) Essentials of

Economics. McGraw hill: NY