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Ece 201 Introduction to Microcomics E Chai Applying Economie Concepts 1-1 (p

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Ece 201 Introduction to Microcomics E Chai Applying Economie 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 you taken that job. what must be given up as the best alternative. Computing Suppose your (after-tax) annual camnings would have the opportunity cost of a college or university education been S25 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 532 000, we must therefore add $100 000 for the surprised to learn how expensive your university degree camings 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 5132 000. Notice that the cost of food, Suppose that a bachelor's degree requires four years of study and that each year you spend 56500 for lodging clothing, and other living expenses did not enter the calculation of the opportunity cost in this example. tuition fees - approximately the average at Canadian The living expenses must be incurred in either case- universities in 2019 - and a further S1 500 per year for whether you attend university of get a job. books and materials. Does this mean that the cost of university education is only 32 0007 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? Maybe 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 caming potential. In pocket expenses on tuition and books. You must also this case, they are giving up four years of earnings at one take into consideration what you are forced to give up by 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 carnings 4. Read the article above and answer the following questions: a. What is your opportunity cost in pursuing higher education in Canada? b. In your perspective, is Canadian post-secondary education worth your investment? Why or why not? c. 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? e. 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 : https://www.youtube.com/watch?v=GxSULFI 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? c. What do you think will happen to the supply and or demand for hand sanitizets when a vaccine for the coronavirus is developed and proven to be effective?