Consider Frank's Decision to Go to College

question 53

Multiple Choice

Consider Frank's decision to go to college.If he goes to college,he will spend $21,000 on tuition,$11,000 on room and board,and $1,800 on books.If he does not go to college,he will earn $16,000 working in a store and spend $7,200 on room and board.Frank's cost of going to college is

• A)$33,800.
• B)$42,600.
• C)$49,800.
• D)$57,000.

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Definitions:

Equilibrium Level

Equilibrium level refers to the state in an economy or market where supply equals demand, so there is no tendency for change.

Disposable Income

Available financial assets to households for investments and outlays after income taxes have been applied.

Government Spending

Expenditures by government bodies on goods and services, including salaries, infrastructure, and welfare programs.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.