Consider the following information regarding a person's decision to go to college: college tuition is $20,000 per year, room and board is $10,000 per year, and books and materials are $2,000 per year.Suppose that instead of going to college this person could have earned $18,000 working in a store.An economist would calculate the cost of going to college as
A)$20,000.
B)$30,000.
C)$32,000.
D)$50,000.
E)$18,000.

Question

Quizplus · Accepted Answer

The cost of going to college includes not only the direct expenses (tuition, room and board, books and materials) totaling $32,000, but also the opportunity cost of not working, which is $18,000. Adding these together gives a total cost of $50,000.

Consider the Following Information Regarding a Person's Decision to Go