ePack: Principles of Microeconomics 6th Edition by Gregory Mankiw

Exercise 1

College students sometimes work as summer interns for private firms or the government. Many of these positions pay little or nothing.
a. What is the opportunity cost of taking such a job?
b. Explain why students are willing to take these jobs.
c. If you were to compare the earnings later in life of workers who had worked as interns and those who had taken summer jobs that paid more, what would you expect to find?