Why Is It Less Costly to Attend College During a Recession

question 46

Multiple Choice

Why is it less costly to attend college during a recession?

• A) Tuition is much lower during a recession.
• B) The opportunity cost is higher during a recession because there are more labor market opportunities.
• C) The opportunity cost is lower during a recession because there are fewer labor market opportunities.
• D) Colleges give out better grades during recessions, so the opportunity cost is lower.

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Definitions:

Asset Bubbles

A market phenomenon characterized by rapid increases in the valuation of a particular asset class above its fundamental value, followed by a sudden crash.

Illicit Trade

The trade of goods that are illegal or prohibited by law.

National Debt

Money owed by the government to individuals, businesses, and government agencies who purchase Treasury bills, Treasury notes, and Treasury bonds sold to cover expenditures.

Corporate Taxes

Taxes imposed on the income or profit of corporations and other business entities by the government.