During Times of High Unemployment, Colleges Often Observe an Increase

question 138

Multiple Choice

During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?

• A)Students go to college even when the net benefit is negative.
• B)The opportunity cost of attending college is lower when unemployment is high.
• C)The opportunity cost of attending college is higher when unemployment is high.
• D)The benefit of attending college is lower because college graduates are less likely to find jobs.

---

Definitions:

First-Hand Knowledge

Information or data obtained directly through personal experience or observation.

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be either positive or negative.

Public Goods

Items that are non-excludable and non-rivalrous, meaning they can be enjoyed by everyone, regardless of whether they contribute to their provision.