Suppose You Plan to Go to School This Summer

question 27

Essay

Suppose you plan to go to school this summer. The cost of tuition and textbooks is $1,400 and housing, board, and entertainment will cost you $500. If you didn't go to school, you'd live in your parents' house for free, but your other living expenses would be about the same. Also, if you didn't go to school you'd work full time and could earn $8,000. You can still work part time while attending the summer school, but you will earn only $3,000.
a) What will the summer school cost you in terms of money explicitly paid?
b) What are the opportunity costs of going to summer school that you don't pay explicitly? Explain.
c) What is your total opportunity costs of going to school this summer? Explain your answer.

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Definitions:

Compassion

A deep awareness of and sympathy for another's suffering, combined with a desire to alleviate that suffering.

Scientific Experiments

Controlled procedures carried out to investigate relationships between variables and observe the effects of manipulation of one variable on another.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.

Psychology

The study of mind and behavior, encompassing all aspects of conscious and unconscious experience as well as thought.