Author Question: Why would a company be more enthusiastic in providing more training to its workers during an ... (Read 93 times)

haleyc112 · **on:** Jun 29, 2018

Why would a company be more enthusiastic in providing more training to its workers during an economic downturn than during an economic boom (assuming that they do not layoff their workers and can keep them when the economy recovers)?

What will be an ideal response?

Question 2

What is the opportunity cost of attending class today?

What will be an ideal response?

tanna.moeller · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

During an economic downturn the opportunity cost of training workers is likely to be much smaller in terms of lost production. However, during an economic boom the costs are much larger because while employees are being trained they are not producing and selling as much output as they otherwise could if they were performing their normal duties.

Answer to Question 2

The opportunity cost of attending class today is the next best alternative for your time including sleeping, studying for another class, or earning income at a job. But it can't be all of these things since you can only do one of these things at a time.