Suppose Your Expenses for This Term Are as Follows: Tuition

question 94

Multiple Choice

Suppose your expenses for this term are as follows: tuition: $12 000, room and board: $6 000, books and other educational supplies: $1 000. Further, during the term, you can only work part-time and earn $8 000 instead of your full-time salary of $20 000. What is the opportunity cost of going to university this term, assuming that your room and board expenses would be the same even if you did not go to university?

• A)$11 000
• B)$17 000
• C)$23 000
• D)$25 000

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Definitions:

Quotas

Limits set by governments on the quantity of a certain good that can be imported or exported during a specified time frame.

Tariff Revenues

Income that governments earn from imposing taxes on the import and export of goods.

Export Subsidy

An export subsidy is a government policy to encourage export of goods and discourage sale within the domestic market, by providing financial assistance or tax relief.

Domestic Price

The price of a good or service within a country; this can be influenced by tariffs, taxes, and supply and demand.