Question

Mrs. Lakshmi has decided to give up her full-time job to go back to school. Identify potential economic risks and one potential economic benefit that Lakshmi might have considered in making her decision. (500 WORDS)

Answer 1

As Mrs Lakshmi has been quit the job and join the school for further education than economic risk associated with her decision is that there should be loss of earnings of Mrs Lakshmi. She has lost her source of income and doing further studies.As money they earned should increase there amount of investment as well as wealth. So , the economic risk for mrs Lakshmi is that they have quit the job and there is a possibility after completing there further education they don't get even the earlier job due to economic recession or any other circumstances in the business.

As economic benefit associated with the further education and quitting the job is that in future she will earning higher earnings due to higher education and better job opportunities available with them.In future, proper decision should be taken so that they will earn higher salary package as well as better job. In long run scanerio , the further education will benefit both in monetary as well as non monetary terms.

Economic risk means that loss they have beared by quitting her job and chances of receiving new job in the future course of action where as economic benefit means that benefit enjoyed by her when she completed her future course of study in time.The benefit they have enjoyed in after completing education in time and becoming a reasonable increase in earnings.

So, both economic risk and economic benefits are interconnected statement which shows that as risk increases than return also increases. As in this case as risk of quitting the job and doing further studies should be beared by Mrs lakshmi where as in case of return there has been increase in salary Amount and better job opportunities available with them.So, in future, the economic benefit has been overcome economic risk.

So, at last we conclude that economic risk is the risk associated with quitting the job and loss of earnings as well as investment in further education where as economic benefit is that better job opportunities as well as better growth and development of mrs Lakshmi.