Topic 6: Opportunity Cost of a College Education

        Marginal analysis is when people are comparing marginal benefits and marginal costs. It’s used in a good decision because it’s a good decision when the marginal benefit is greater than the marginal costs. The marginal benefits of learn one more years of higher education is that people can get paid higher in future job. The marginal cost of learning one more year of higher education is the time and the money you can get during the time you study.

        It’s not accurate that college graduate earn $1 million more than those non-graduated. This is because according to statistic, non-graduated learn higher or about the same as the college graduate student.

        Students decide to leave college after one year of education because that the marginal benefits of learning one more year of college education is only the few growth of their money in the future job or non growth in money for the future. However the marginal costs of learning one more year is that they need to pay the money for the college and the time and money they can get if they don’t take one more year of college.

        The information in the video is somewhat related to what my parents told me. Both talk about the benefits of going to college. I change my thought of going to college after watching this video. Before, I think that going to college will greatly increase the income of your future job, but after watching this video. I realize that there’s not much change about going to college.