Suppose That Rosa Is Considering Migration to Another Country

question 101

Multiple Choice

Suppose that Rosa is considering migration to another country. To move, she will have to spend $5,000 on transportation and $4,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $500,000. She expects to earn a stream of future earnings of $800,000 in another country. Based on this information, Rosa's explicit cost of migrating is

• A) $9,000.
• B) $500,000.
• C) $507,000.
• D) $5,000.

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