Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. Larry's opportunity cost of attending Elite U is:
A. $50,000
B. $15,000
C. $20,000
D. $70,000
Answer: D
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Which of the following scenarios would tend to raise the value of the U.S. dollar in foreign exchange markets?
A. An increase in the U.S. demand for foreign oil B. A rise in U.S. interest rates C. Enactment of contractionary fiscal policy in the United States D. Enactment of easy monetary policy in the United States
The crowding-out effect refers to the possibility that an
a. increase in the money supply will result in a decline in taxes. b. increase in consumption spending will crowd out government spending. c. increase in private savings will crowd out the taxable income of households. d. increase in government borrowing will result in higher interest rates, which will crowd out private investment and consumption.
Suppose a family's budget line is such that the horizontal axis shows the amount of food consumed, while the vertical axis measures the consumption of all other goods. Suppose this family receives food stamps. This will cause the budget line to
A. shift leftward. B. rotate leftward along the vertical axis. C. shift rightward along the horizontal axis. D. pivot along the horizontal axis.
The Human Development Index does not contain a component on
a. income b. literacy c. food intake d. life expectancy e. it contains components of all