Suppose your expenses for this term are as follows: tuition: $28,000, room and board: $9,000, books and other educational supplies: $2,500. Further, during the term, you can only work part-time and earn $16,000 instead of your full-time salary of
$42,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?
A) $36,500
B) $56,500
C) $65,500
D) $72,500
Answer: B
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Fiscal policy is determined by the Federal Reserve System
Indicate whether the statement is true or false
The interest rate the Fed charges banks borrowing from the Fed is the
A) federal funds rate. B) Treasury bill rate. C) discount rate. D) prime rate.
An increase in the price level in an economy will _____
a. shift the aggregate demand curve to the right b. shift the aggregate demand curve to the left c. increase the quantity of real gross domestic product (GDP) demanded d. decrease the quantity of real gross domestic product (GDP) demanded e. increase the aggregate expenditure
If the revenues and expenditures of the Social Security trust fund were not included when calculating the budget deficit, the recalculated deficit would
a. be larger. b. be smaller. c. be unchanged. d. actually be a surplus.