Margo attends college and spends $10,000 for one year's tuition. If she worked a full time...

Margo attends college and spends $10,000 for one year's tuition. If she worked a full time job instead of going to school, she would earn $20,000. To an economist, Margo’s opportunity cost for one year in college is

Group of answer choices

a.$120,000

b.$30,000

c.$10,000

d.$20,000

Solutions

Expert Solution

Opportunity cost is the total value of the foregone activity, therefore, in this case Margo could have earned $20,000 by working full time and if she decides to go to college it means she will not have the opportunity to work full time and earn $20,000, therefore, Margo's opportunity cost is $20,000, so the right answer is option D.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

10. Tuition Increase At one college, the tuition for a full-time student is $8000 per semester....

10. Tuition Increase At one college, the tuition for a full-time student is $8000 per semester. It has1 been announced that the tuition will increase by 3 percent each year for the next 5 years. Write a program with a loop that displays the projected semester tuition amount for the next 5 years.

At one college, the tuition for a full-time student is $8,000 per semester. It has been...

At one college, the tuition for a full-time student is $8,000 per semester. It has been announced that the tuition will increase by 3 percent each year for the next 5 years. Write a program with a loop that displays the projected semester tuition amount for the next 5 years. The program should print out the result in the form In 1 year, the tuition will be $8002.3. In 2 years, the tuition will be $8103.2. In 3 years, …...

Terry attends college and works part-time in a drug store. She can work up to 40...

Terry attends college and works part-time in a drug store. She can work up to 40 hours each week and is paid $9 per hour. The following table shows her utility from different levels of leisure and income. Hours of Leisure Total Utility from Leisure Marginal Utility of Leisure Work Hours Income Total Utility from Income Marginal Utility from Income 5 18 5 45 35 10 34 10 90 59 15 48 15 135 77 20 56 20 180 86...

Obrey will start attending college in September 2024 at which time she will need $10,000 for...

Obrey will start attending college in September 2024 at which time she will need $10,000 for the first year of study. Her costs at college for the next three years are estimated at $12,000, $13,000, and $14,000 respectively. Obrey’s family plans to make equal payments to a money market fund which yields 10%, the first payment will be paid in September 2012 and the last in September 2024. What is the size of the annual payments the family must make...

. The state's education secretary claims that the average cost of one year's tuition for all...

. The state's education secretary claims that the average cost of one year's tuition for all private high schools in the state is $2350.00.A sample of 35 private high schools is selected, and the average tuition is $2315.00. The population standard deviation is $38.00. At a significance level of 0.05, is there enough evidence to reject the claim that the average cost of tuition is equal to $2350.00?

Today is your child’s first birthday. You anticipate that when your child attends college, the full...

Today is your child’s first birthday. You anticipate that when your child attends college, the full cost of tuition for their freshman year will be $75,000 and that this cost will increase by 4% per year for each following year. You would like to begin saving money today, and each birthday up to and including your child’s 18th birthday, to fund your child’s education. If the account in which you will be saving earns interest at a rate of 8%,...

Using Python 3 In 2017, the tuition for a full time student in a university is...

Using Python 3 In 2017, the tuition for a full time student in a university is $6,450 per year. The tuition will be going up for the next 7 years at a rate of 3.5% per year. Write your program using a loop that displays the projected year tuition for the next 7 years. You should display the actual year (2018, 2019, through 2024) and the tuition amount per year.

The number of hours that should be worked by a full-time bar attendant is stipulated in...

The number of hours that should be worked by a full-time bar attendant is stipulated in the Queensland award as 36.25 hours per week. However, the secretary of the Queensland Council of Unions believes that the average work hours per week of full-time bar attendants is not that specified in the award. From a random sample of 38 workers, it was found that the average working week was 36.65 hours with a variance of 0.85 hours squared. On the basis...

You are 30 years old and are considering full-time study for an MBA degree. Tuition and...

You are 30 years old and are considering full-time study for an MBA degree. Tuition and other direct costs will be $20,000 per year for two years. In addition, you will have to give up a job with a salary of $40,000 per year. However, if you go on for two more years of graduate study, you can increase your earnings to $45,000 per year. Assume a real interest rate of 4% per year and ignore taxes. Also assume that...

Dean Halverson recently read that full-time college students study 20 hours each week. She decides to...

Dean Halverson recently read that full-time college students study 20 hours each week. She decides to do a study at her university to see if there is evidence to show that this is not true at her university. A random sample of 32 students were asked to keep a diary of their activities over a period of several weeks. It was found that the average number of hours that the 32 students studied each week was 19.1 hours. The sample...

Subjects