The question requires us to
- Check the rationality of people who end their formal education after school, after a college degree, and after graduation degree.
- Determine the non-monetary reason people stay in school for different durations.
- Determine the reason for different non-monetary costs and benefits of college among individuals.
Explanation of Solution
In economics, two factors are responsible for almost every decision taken by an individual; scarcity and choices. People have different choices based on the scarcity of resources. Some people join jobs just after school because for them the
Non-monetary reasons such as a passion for learning or getting knowledge, getting a degree, maintaining family reputations, and achieving higher aims can be the reasons for staying in school for different durations.
The opportunity cost can be different for different individuals. Along with the opportunity cost, the non-monetary reasons given above are responsible for the difference in non-monetary costs and benefits among the individuals.
Chapter 1A Solutions
Krugman's Economics For The Ap® Course
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