Suppose That a College Student Receives an Offer for a Summer

question 27

Multiple Choice

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm. Unfortunately for the student, the internship is unpaid. Is it ever economically beneficial to accept an unpaid job?

• A)Yes, because the experience gained during the internship would increase the student's human capital.
• B)No, because the opportunity cost is too high.
• C)No, because the student is signaling to future employers that he or she is willing to accept low wages.
• D)Yes, because accepting an unpaid job signals to future employers that the student has stable personal finances.

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Definitions:

Paycheque

A paycheque is a check issued by an employer to pay an employee for services rendered, typically on a regular basis like weekly or monthly.

Savings Account

A deposit account held at a bank or other financial institution that provides modest interest rates.

Meritocratic System

A system in which advancement in society is based on an individual's capabilities and merits rather than on family, wealth, or social connections.

High Grade Point Average

High Grade Point Average (GPA) reflects strong academic performance and achievement, typically indicating that a student has attained A or A+ grades in their coursework.