Comment on the statement from an opportunity cost perspective: “The major cost of going to college is the $15,000 per year in tuition.” Assume that a person could have earned $30,000 a year if the person did not go to college
Please provide the best answer for the statement.
Tuition is only one part of the cost of going to college. The major cost of going to college for most people is the forgone income that could have been earned working full-time. Let’s say a person had a choice of going to college with a yearly tuition of $15,000 or working full-time at a job that paid $30,000 a year. In this case, the opportunity cost of going to college would be $45,000 ($15,000 in tuition paid plus the $30,000 in forgone income).
You might also like to view...
Refer to the accompanying figure. The opportunity cost of increasing medical care from 200 to 400 units is ________ the opportunity cost of increasing medical care from 400 to 600 units.
A. less than B. exactly the same as C. twice as much as D. greater than
When actual investment is less than planned investment:
A. the quantity of output sold is the amount the firm expected to sell. B. firms have sold less output than expected. C. the economy produces short-run equilibrium output. D. firms have sold more output than expected.
Suppose the world was on the gold standard. If Japan ran persistent trade surpluses,
A. Japan's money supply would increase. B. Japan would experience inflation. C. Japan's exports would fall. D. All of the choices are true.
The above figure shows the apartment market in Big City. What is the equilibrium rent in Big City?
A) $1500 B) $1350 C) $1250 D) $1125