Nobody downloaded yet

Thinking like an economist: The basic vocabulary of the field - Admission/Application Essay Example

Comments (0) Cite this document
Summary
Thinking like an economist: The basic vocabulary of the field 1. How does a college education increase one’s human capital? College education increases one’s human capital in many ways. First, education is one way of assuring of individual employment and earning…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.7% of users find it useful
Thinking like an economist: The basic vocabulary of the field
Read TextPreview

Extract of sample "Thinking like an economist: The basic vocabulary of the field"

Download file to see previous pages Vice Chairman Jim Saxton of the US Congress Joint Economic Committee reported that the amount of education of a person determines his earning capacity; and that the more he learns, the more he absorbs new information, technology and new skills easily. This is particularly true since I believe that when the human capital is developed, his productivity level is improved, he turns out a good output of work that in turn increases his value and earnings. I also think that the amount of education one has acquired determines the gap in the income of professionals and the lowly-educated employees. For instance, Vice Chairman Saxton presented in his committee report saying that professionals earn around $80,000 per year while the high school graduates earn the average of $26,300 per annum. This amount of pay tends to increase along with the length of time spent by the employee in the company because of bonuses and longevity pay. Aside from the remunerations there are also non-cash benefits from investing in education to increase human capital. In a highly competitive labor market, those with higher education are preferred by employers because they contribute to the over-all productivity of the company. Thus, it can be concluded here that education is significant factor that improves the life of a person. 2. Does your college tuition fully reflect the opportunity cost to you of taking the course? What is your personal opportunity cost of taking this course?  When I go to college naturally, I spend money for tuition fee for taking the college course I want. In enrolling in college, I lost the opportunity to earn income that other high school graduates do. Opportunity cost is the comparison of alternatives of going to college or to work. In most cases, there is a need to assess the costs and benefits of the options taken, and the benefits of foregone opportunity. When I choose the alternative of going to work, it means I have to give up college education and forego the opportunities that go with it. Let us take an example of my personal opportunity cost in taking this through some assumptions. Suppose that the amount of going to college for one year is $5,000. In assessing the opportunity cost, we must add to $5,000 the amount of foregone opportunity of working. We should consider the lost opportunity to earn $20,000 a year if I worked full time. So the actual cost of going to college is $5,000 for direct expenses of going to college and the $20,000 of foregone salary, so it is $25,000. When we consider the cost and benefit, it would show that going to college has a long term benefit because as shown in Vice Chairman Saxton’s study, the earnings of a college graduate is twice as much higher than a high school graduate. Simply put, when I finish college, my earnings bracket is $46,000 as against $26,000 of those with lower education. By the above example, opportunity cost to me, means that the choice I make will give me the maximum value of earning twice if I choose college education over the short term benefit of earning wages right after high school graduation. 3. Does a reduction in trade barriers cause a country to move closer to its production possibilities curve or does it cause the production possibilities curve to shift outward? What factors would cause the production possibilities curve to shift outward (economic growth)? Trade barriers are government restrictions placed by the government to protect their domestic production. Common trade barriers according to WiseGeek are ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Thinking like an economist: The basic vocabulary of the field Admission/Application Essay”, n.d.)
Thinking like an economist: The basic vocabulary of the field Admission/Application Essay. Retrieved from https://studentshare.org/macro-microeconomics/1433325-thinking-like-an-economist-the-basic-vocabulary-of
(Thinking Like an Economist: The Basic Vocabulary of the Field Admission/Application Essay)
Thinking Like an Economist: The Basic Vocabulary of the Field Admission/Application Essay. https://studentshare.org/macro-microeconomics/1433325-thinking-like-an-economist-the-basic-vocabulary-of.
“Thinking Like an Economist: The Basic Vocabulary of the Field Admission/Application Essay”, n.d. https://studentshare.org/macro-microeconomics/1433325-thinking-like-an-economist-the-basic-vocabulary-of.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Thinking like an economist: The basic vocabulary of the field

Thinking Like An Economist

...? Thinking Like An Economist Q Trade barriers such as quotas, tariffs and exchange controls are employed by countries to distort market forces in order to give a comparative advantage to the domestic industry. Free market system which is the most productive way of running an economy suggests that any intervention by forces other than demand and supply will tend to affect the economic efficiency negatively, resulting in production inside the production possibilities frontier rather than on it. Thus, trade barriers will reduce market efficiency. The reason is simple that the comparative advantage that is there in free trade system will be lost and the economies will have to produce each and...
4 Pages(1000 words)Essay

Thinking like an economist: The basic vocabulary of the field

...? Thinking like an economist: The basic vocabulary of the field Thinking like an economist: The basic vocabulary of the field To most people, capital refers to assets, which include but not limited to bonds, stocks, commodities, and real estate. Of course, these assets are convertible into tangible capital at a future date commonly determined by the holder. Investment advisors undergo hard and tiresome times when trying to provide a risk or return profile with a correlation of these assets in an attempt to come up with effective...
4 Pages(1000 words)Essay

Thinking like a economist the basic vocabulary of the field

...Opportunity cost Human capital is the measure resulting from an individual’s skill set. The concept of human capital recognizes that labor is not equal and that the quality of and the individual is reliant on the education of the individual abilities and experiences of the individual. Investment in human capital can, therefore, be improved and enhanced through education. The most basic contribution to college education in increasing an individual’s human capital is the acquisition of skill. College education instills the required skill into an individual thus enabling the individual increase their economic value in the marketplace. The position on the supply side is that college education instills the knowledge and...
3 Pages(750 words)Case Study

Thinking like an Economist

...Thinking like an Economist Adam Smith is considered the father of modern economic theory. Do you think his ideas are relevant today Explain your reasoning. Adam Smith is very famous for being the proponent of the "invisible hand" and how it helps maximize the welfare of the whole society. According to him, the whole economy will function most efficiently when the market is left alone and players pursue their best interest. Adam Smith also became closely identified with the laissez-faire market mechanism which asserts that a free market though appearing "chaotic" and "unrestrained" is the best factor which determines the right quantity of goods in a society. The operation...
2 Pages(500 words)Essay

Thinking like an economist

...Module 1 Thinking Like an Economist Each of us deals on a daily basis with many small stores and other retail businesses. These firms may be small but they reflect most of the major concepts of economics. For my project I have selected a retail food store or supermarket. These stores operate on a very tight margin, so that the difference between profit and loss, and indeed between security and survival, is a very narrow one. They must therefore apply sound economics. The margin for such stores depends on the spread between all of their costs and expenses and the selling prices of their products. Those selling prices, in turn, depend on the supply and demand for those products... . Another...
2 Pages(500 words)Essay

Thinking like a Macro-Economist:

...Running Head: ABBREVIATED OF YOUR CHOICE (all caps) and Section # of Thinking like a Macro-Economist 1. The role of the government in bringing out a country from the recession has become one of the most intriguing questions of the century. Two of the most famous economic theorists: John Maynard Keynes and Milton Friedman have played an important role in answering the question. Keynesians, following the lead of John Keyes, recommend strong intervention from the state to soothe out the business cycle. He focused more on unemployment rather than inflation. On the other hand, monetarists following the lead of Milton Friedman proposed the opposition of the government interference in the...
3 Pages(750 words)Essay

Thinking like an economist: The basic vocabulary of the field SLP

...THINKING LIKE AN ECONOMIST: THE BASIC VOCABULARY OF THE FIELD I have chosen McDonalds as a franchise because it had proven itself to be a successful outfit around the world with 12,484 units of franchise in the United States as of 2011 and 33,009 locations in all parts of the globe. It had become from its beginnings in 1955 as an internationally-known chain of restaurants specializing in hamburgers, chicken, French fries and other fast-food items. Given their proven methods of doing business, there is no need for sleepless work on research in this business since everything had already been taken cared of by this franchise which had already proven itself as a successful business globally (Entrepreneur, 2011). There are three... is that...
2 Pages(500 words)Admission/Application Essay

Case-1 Thinking like an economist: The basic vocabulary of the field

...Case Thinking like an economist: The basic vocabulary of the field The chosen firm and the underlying interest The company selected for the projectis subway. The company is ranked second on the Top 10 list of franchises for 2012. It is a restaurant franchise of America. The organization primarily sells submarine sandwiches and salads. Doctor Associates owns and operates the company. The company is second largest operator of restaurant globally (Subway, 2012). The company is the largest single brand restaurant. The interest underlying selection of the company is in spite of being a single brand restaurant chain; the company has succeeded...
2 Pages(500 words)Essay

Basic Critcal Thinking

...Basic Critical Thinking al Affiliation Basic Critical Thinking What steps does your textbook’s recommend for achieving yourshort-term goals? According to Chaffee (2012), the steps recommended for achieving one’s short-term goals are: (1) identifying the goals through ranking them in order of importance and selecting which one should be focused on; and (2) devising plans or strategies to accomplish the goals that were identified through: (a) listing the steps to provide clear direction for outlining the appropriate order; (b) estimating the time frame to undertake them; and (c) planning the steps by incorporating them in one’s daily or weekly schedule (pp. 12-13). 2....
2 Pages(500 words)Essay

Basic Critical Thinking

...Basic Critical ThinkingBasic Critical Thinking The European debt crisis is essentially the shorthand definition of Europe’s profound struggle to pay off its built up debt in the last few decades. In the region, five countries, namely Spain, Ireland, Greece, Italy and Portugal have, to different degrees, been unable to generate sufficient economic progress to allow their capability to pay back creditors such as bondholders. While the five countries were considered to be in immediate danger of imminent default, the crisis caused far-reaching implications, which extend far beyond the boundaries of these countries to the entire world (Cline & Wolff, 2012). The European debt crisis is one of the most critical financial huddles... Thinking...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Admission/Application Essay on topic Thinking like an economist: The basic vocabulary of the field for FREE!

Contact Us