Question

The economic cost of education of a student is the summation of all the economic cost of the resources used by the student in order to obtain his or her education. This includes the time the student dedicates to study. Consider Juana’s case. Her tuition is $32,000.00 per year; Juana works part time on a Bookstore and receives $10,000.00 a year for it; if she were going to drop out of college and work full time, Juana would receive $22,000.00 a year. The economic cost of Juana’s education (per year) is?

Answer 1

Answer: The economic cost of Juana’s education (per year) is $44000.

Explanation: The economic cost of education of a student is the summation of all the economic cost of the resources used by the student in order to obtain his or her education so The economic cost of all resources is = Tuition + Time. We know that Juana works only part time and if she works full time she will receive $ 12,000 more than if she works part time. Therefore the cost of Juana's time is $ 12,000. The tuition is clearly $32000 therefore the economic cost of studying is equal to

32000 + 12000 = $44000