TUITION FEES

Tuition Fees in English Universities

Tuition Fees in English Universities

Introduction

The decision that is taken by the government that is to raise the cap on tuition fees in English universities from £ 3000 to £ 9000 made its impact on various stake holders. This impact on the concerned stake holders that are the students are affected mostly as the cost of education for a student has increased. Moreover, the recession, the economic growth also contributed in increasing the cap on tuition fees in English universities. In addition to this, inflations are a crucial factor in increasing the cap on the tuition fees. Therefore, it is essential to know that what impacts this increase will make on the economy.

Discussion

Impact on the Opportunity Cost of Students due to change in Tuition Fees

The increase in the cap on tuition fees in English universities from £ 3000 to £ 9000 affected the opportunity cost of the stake holders as due to the increase in the fees, the cost of education has increased due to which there are various students who cannot afford to the cost of education. Therefore, as the students cannot afford the education, they can do something else for instance, they can do technical work, which can cost, lower than the education. However, the increase in the cap on the tuition fees will affect the level of education among that the society that is the literacy rate will be affected (Bruce and Marcucci, 2010, 47-58).

Opportunity cost, in money or quantities, expressed lost benefits or income, by the alternative use of the services that is education in the English Universities can be achieved would have been. Opportunity costs arise always by the fact that resources used only once and not for other purposes can also be supplied. Who, for instance, with his money real estate purchases, cannot this money again in bonds to create? The resulting loss of interest earnings represents the opportunity cost (Hotcourses, 2008, 19-28). As the opportunity cost defined as the cost of alternatives use of scarce factors. Opportunity costs are also opportunity costs mentioned. They are the loss of marginal utility of the possibility of action in a decision problem, carried out on the benefit of the alternative will be waived.

The graphical representation mentioned above shows the raise in price due to which the opportunity cost of the student or in other words the consumer is shifting, like in the case of the students of the UK where the government has raised the cap on tuition fees of English universities; this rise in the tuition fees will affect the opportunity cost of the students. In addition to this, the higher education is important like most goods and services in the economy, as its price rises; individuals are likely to consume less of it, all other things being equal. Higher education is what economists refer to as a “normal” good keeping all other things being equal, as real incomes rise, more students will enrol in ...