Learners need to weigh up the opportunity cost of attending university. People who graduate from university generally receive higher earnings than those who do not attend university. A larger number of graduates affects a country’s production possibility curve. Some economists argue that students ought to cover the full expense of their university courses and accommodation. Others believe that the government should cover part or all of these costs.
(a)[2]
Describe one opportunity cost that a student may face when going to university.
(b)[4]
Explain why university graduates usually earn more than people who have not attended university.
(c)[6]
Using a production possibility curve diagram, analyse the effect of a rise in the number of graduates on an economy.
(d)[8]
Discuss whether graduates should cover the full cost of their university education.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “the next-best alternative that is forgone” …