Unemployment and Opportunity Cost in the US - Assignment Example

Voluntary is when people do not work because they feel better off unemployed. Conversely, involuntary unemployed people are generally unable to find jobs despite having the knowledge and skills needed. This issue is important because its costs are essentially borne by society. These costs are mainly: the national income is less than the potential due to output. As a result of this, the government loses tax revenue. With Lower national output, other employees lose additional wages that they might have earned. Firms also lose a lot of revenue as they could have engaged more staff (Macpherson, 2012). Additionally, with unemployment levels on the rise crimes and violence also rise in society.

Opportunity Cost

At college, a lot of money is spent on; tuition, books, transport, board, room, clothing, and recreation. It is quite expensive to pay and maintain a student through a college education. Therefore, the opportunity cost of doing a degree course is very expensive. The money that one pays from the start to the end of a college degree is much. The standards of living of a student are higher even if one gets out of school after school with nothing (Macpherson, 2012).

College education has some benefits these are; the salary received by a college graduate is much higher than that of a non-graduate. A college graduate also gains skills that are useful in any job. An individual will also be able to socialize well with people in society. The benefits of a college degree are worth the opportunity cost, this is because of the skills and the knowledge one would have gained at the end. It is a must to go to college for a career path and also it tends to provide flexibility (Macpherson, 2012). College graduates earn a higher income and this is an indication that they differ from those who did not go to college. It’s may believe that college adds importance, not only to an individual but also to society. Read More