Journal Topic 6: Opportunity Cost of a College Education

  Marginal analysis of something would be analyzing the Marginal Benefit and the Marginal Cost and seeing which one yields the best outcome for you. Marginal benefit is the value of one more additional unit of certain things while the marginal cost is something you are giving up while you take the action. When you analyze these two things, you can reach for the best type of choice that is the most suitable for you in decision making. The marginal cost of going to one more year of college would be not being able to work full time, travel, or study abroad in the time, and things like losing money for college tuitions would also be a cost. The marginal benefit to many people would be higher salary after graduating every single year as they complete college. I believe the statement that college graduates earn $1 million dollars more than highschool graduates is not accurate. I believe that there are people who are on top of the spectrum who skews the entire population statistics to the other side. There are billionaires who does this, so therefore I believe that this statement is not very accurate. However, I do believe that college graduates in general on average does make a slightly higher pay check than normal highschool drop outs. Some students analyze their marginal cost, and realize that because they are paying so much money to the college, that they are going to backrupt the household with their higher education system. They wont be making money any time soon, and they will have to be spending their parent's money for this education. The marginal benefit would be slightly higher pay after graduating, but after four years of working, it could mark up to the same level as the college graduate's pay check. Everyone's been telling me that going for the higher education is the way to go as we will be making more money, I do believe that, my views haven't changed significantly after the video, I do know that there are costs into going to college, but the benefits after graduating is just far greater than the cost of attending college. I believe that it is just a cultural belief that is harder for me to think about not succeeding even after earning a college degree