The daily decision-making process is characterized by opportunity cost which is the loss of an alternative when one of the presented options is chosen. By definition, an opportunity cost is a benefit that a person could have received, but gave up, to take another course of action. Typically, most scenarios present situations that only one option is to be chosen at the expense of all other alternatives and in this particular case, a decision is based on either going to college or going directly to a skilled/ trade schools. These options are evidently mutually exclusive and within a specified period. As such, making the decision to go directly to skilled/trade school is characterized by a forgone college experience within the timeframe.
In such a situation, it is recommended that a decision is made from an informed point of view that requires extensive research into the option available. Considering that opportunity costs involve the complete foregoing of the rest of the options, it is imperative, therefore, that the decision maker understands what they are missing. Basically advocated for weighing on the presented options, the merits and demerit of each alternative that informs the final decision. In this case, going to college or directly to a skilled/trade school present both merit and demerit that are going to be explored. Eventually, a decision to go to a college is arrived at as will be justified in the subsequent sections of this paper. The opportunity costs are based on salary, the retirement age and the work-life balance that both options present.
Salary opportunity cost
Salary as an opportunity cost is evaluated based on the scales that are predefined in the marked based on the preexisting scales within the labour markets. The mindset adopted favours higher salary and remunerations. Within the labour markets, there is decreased demand for college graduate compared to skilled labourers owing to the increased population of college graduates in the labour force that supersedes what the employers could handle. This position has decreased the comparative difference in average earning of College graduate but a research conducted in Georgetown University Center on education revealed that the Workforce calculated the lifetime earnings of college degree earners to be $960,000 more than those with diplomas. This finding is in favour of attending college as compared to skilled/trade schools.
Retirement opportunity cost
The retirement age and benefits for college graduates is higher compared to those in diplomas from skilled/trade schools. Although there is increased demand for the blue collar labourers which increase the chances of prolonged exposure to the work environment, it is also evident that the manual work that is associated with the service tends to limit the years that a professional can be reliable and productive in service. Equally, the retirement benefits are defined by the levels of technical skill which often disadvantage the skilled/trade scholars. As such, a degree holder has a competitive advantage in retirement age and retirement benefits make it the desired alternative.
Work-life balance opportunity cost
The work-life balance is the third component that defined the opportunity cost involved the presented options. Attending a college presents chances of white collar jobs that are often associated with relatively tight schedules and eight-to-five daily timeframes. In most office works, there is the risk of unhealthy sedentary lifestyle. On the contrary, blue collar works that are associated with skilled/trade school diplomas tend to present a healthier lifestyle that is characterized by more physical activity that is recommended.
Clearly, the design to attend college rather than skilled/trade schools has both merit and dements. The opportunity cost is evident but weighing the option presented above, it is evident that college would have much more benefits relative to its alternative. As such, the benefits associated with skilled/trade school becomes a foregone alternative.
