Suppose that your tuition to attend college is $24,000 per year and you spend $8,000 per year on room and board. If you were working full time, you could earn $30,000 per year. What is your opportunity cost of attending college for one year?
A. $32,000
B. $38,000
C. $54,000
D. $62,000
Answer: C
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Why might private investment in poor countries, rather than aid by foreign governments and international agencies, contribute more effectively to economic growth?
A) Private investment is more consistent with central economic planning. B) Technical assistance is often part of the private investment package. C) Private investment is always selfish. D) Private investors are smarter and more street-wise than public authorities.
If nominal wage rates are contractually determined and cannot change in the short run, then an unexpected increase in the inflation rate will:
a. increase business profits and reduce the unemployment rate. b. reduce both business profits and the unemployment rate. c. reduce business profits and increase the unemployment rate. d. increase both business profits and the unemployment rate. e. cause no change in business profits or the unemployment rate
Two nations with differing comparative advantages will be able to consume more if they specialize and trade with each other than if they did not specialize or trade with each other.
Answer the following statement true (T) or false (F)
When the Fed wishes to decrease the money supply, it can
A. ask people to buy more bonds. B. turn additional funds over to the Treasury. C. increase the required reserve ratio. D. decrease the required reserve ratio.