Suppose that a college student receives an offer for a summer internship with a stock brokerage firm. Unfortunately for the student, the internship is unpaid. Is it ever economically beneficial to accept an unpaid job?
A)Yes, because the experience gained during the internship would increase the student's human capital.
B)No, because the opportunity cost is too high.
C)No, because the student is signaling to future employers that he or she is willing to accept low wages.
D)Yes, because accepting an unpaid job signals to future employers that the student has stable personal finances.

Question

Quizplus · Accepted Answer

Accepting an unpaid job can provide valuable experience and increase the individual's human capital, which can lead to better career opportunities and higher wages in the future. While the opportunity cost of not earning income during that time is high, the long-term benefits of gaining experience and skills can outweigh the short-term costs. Additionally, employers often value candidates who have completed internships, even unpaid ones, as it demonstrates a commitment to their field and a willingness to invest in their own career development.

Suppose That a College Student Receives an Offer for a Summer