A middle-aged manager with a bachelor's degree in business loses his job. After 18 months of unemployment, he decides to return to school to improve his IT skills; a scholarship provides tuition. Which statement is TRUE regarding the rate of return on his additional training?

Question

Quizplus · Accepted Answer

The opportunity cost of time is a concept that refers to the benefits an individual could have received but gave up, to take another course of action. Since the manager is unemployed, he is not foregoing any income to return to school, which means the opportunity cost of his time is low. This situation increases the potential rate of return on his investment in education because the costs (foregone income) are minimized.

A Middle-Aged Manager with a Bachelor's Degree in Business Loses