On a cultural note, most American students have to work to pay for school and living expenses whereas most German students don't work (at least much) until they graduate. (at least in the 90s it was so). The "or" struck me as odd since it is not an either or premise in America.
The question for me is what is the context. When you say "Studieren Sie" are you asking if the person is studying something this very minute, or are they a student at a university/college? So, is the person asking "are you going to school or are you working in some trade/occupation" or, are they asking "what are you doing right now." To me, the goal of translating something is not to merely translate words, but rather to express the meaning of the first language into a natural expression in the second language.