It has been observed that university enrollment in Canada is higher during periods of high unemployment. A possible explanation for this is that
A)when prospects for getting a job are poor, the opportunity cost of getting a job is lower.
B)during periods of high unemployment, tuition fees are reduced.
C)when prospects for getting a job are poor, the opportunity cost of going to university is lower.
D)during periods of high unemployment, the opportunity cost is no longer relevant.
E)when prospects for getting a job are poor, the opportunity cost of doing nothing is higher.

Question

Quizplus · Accepted Answer

When unemployment is high, the opportunity cost of going to university decreases because the alternative of getting a job with a high salary is less likely. Therefore, individuals are more likely to choose to invest in higher education and improve their job prospects in the long run.

It Has Been Observed That University Enrollment in Canada Is