Thinking like an economist essay

The college education increases career opportunities consistently and, therefore, increases the human capital because the value of the labor force increases respectively to the education of the labor force. In fact, college education is one of the major factors that opens better employment opportunities. At any rate, the wide gap between low- and semi-qualified jobs, on the one hand, and well-qualified jobs, on the other, reveals the full extent to which college education is important for better career opportunities. Therefore, the human capital rises respectively to the education of an individual. In such a context, my college education can increase my human capital because I will a more valuable employee with a college degree than I am at the moment without the one.

In this regard, my college tuition mirrors my personal opportunity costs only partially because my further career development depends on my skills and abilities as well as on my further employment. For instance, a fast growing company can offer me better career opportunity compared to a stagnating company, while I can work in either of the company and my college education as well as tuition will not change my career development in either organization. Consequently, my college tuition cannot mirror my cost opportunities. At any rate, the human capital comprises a number of factors and the college education and tuition is just one of the factors that may increase the opportunity cost and career opportunities but this factor is not the determinant one.

The reduction of trade barriers causes the country to move closer to its production possibilities because the reduction of trade barriers contributes to the acceleration of the production and consistent rise in the production possibilities of the country. The elimination of trade barriers naturally increases the trade between countries. In this regard, it is possible to refer to the example of the EU, which economy has grown substantially since the elimination of trade barriers. As the trade between member states grows, the production and national economies keep growing too. As a result, countries benefit from the elimination of trade barriers, while each county moves closer to its production possibilities frontier.

The comparative advantage allows countries to take a better competitive position because products exported by such countries are of the higher quality; at least they are perceived to be of the higher quality. In addition, countries with the comparative advantage can use more flexible pricing policies compared to their potential rivals that are in a worse position. Countries with the comparative advantage can grow faster because, a priori, they are in an advantageous position compared to its possible rivals.

At the same time, standards of living increased in richer nations because they could benefit from the free movement of goods after the elimination of trade barriers. The elimination of trade stimulates consumption and the production increases and so do standards of living because consumers get access to a larger amount of products and manufacturers have to offer consumers products of the higher quality to make consumers buy them. Thus, standards of living are growing.

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