Before you started applying for college, a job recruiter offered you a full-time

Question

Before you started applying for college, a job recruiter offered you a full-time cashier position at a doctor’s office earning an after-tax salary of $24,000 per year. However, you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including tuition, supplies, and additional housing expenses, is $38,000.

e Highest: /1 you value a year of college at $24,000 you value a year of college at $38,000 doctor's office earning ob thi you value a year of college at more than $62,000 tional monetary cost of pen you value a year of college less than $38,000

Explanation / Answer

Ans: you value a year of college at more than $62,000

Explanation

By turning down the cashier job (i.e., going to college), you forgo the earning of $24,000. Thus, it is called the opportunity cost of attending college. Again, you also pay $38,000 for tuition, supplies, and additional housing expenses. So,the

Total cost of attending your first year of college = $24,000 + $38,000 = $62,000 .

Since, you decide to attend the college, soyou value a year of college at more than $62,000.

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