How is the unemployment rate related to the opportunity cost of college? Select

Question

How is the unemployment rate related to the opportunity cost of college? Select one: a. As the unemployment rate increases, the opportunity cost of attending college increases because fewer people are giving up the opportunity of working to attend college. O b. As the unemployment rate increases, the opportunity cost of attending college increases because more people are giving up the opportunity of working to attend college O C. As the unemployment rate increases, the opportunity cost of attending college falls because fewer opportunities for employment exist. ° d. As the unemployment rate decreases, the opportunity cost of attending college falls since it becomes easier to pay for tuition when employed O

Explanation / Answer

The opportunity cost of attending college is the wages foregone during attending college. If the unemployment rate will be high, wages lost will be lower as there are fewer opportunities for getting employed.

Therefore, As the unemployment rate increases, the opportunity cost of attending college falls because fewer opportunities for employment exist.

OPTION C

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.