Question

The explicit costs of going to college include?

1) the tuition costs, where implicit costs include the fees paid to the college.
2) forgone income, where implicit costs include tuition costs and the cost of books.
3) tuition costs and the cost of books, where implicit costs include forgone income.
4) the fees paid to the college, where implicit costs include the tuition costs.

Answer 1

The explicit costs of going to college include tuition costs and the cost of books, while implicit costs are represented by forgone income, which is the money a student could have earned if they were working instead.

Step-by-step explanation:

The explicit costs of going to college include tuition costs and the cost of books, where implicit costs include forgone income. The explicit costs of going to college include tuition costs and the cost of books, while implicit costs are represented by forgone income, which is the money a student could have earned if they were working instead.

The distinction lies in that explicit costs involve actual cash transactions or out-of-pocket expenses like tuition fees, books, and other direct payments related to the educational services provided by the college. On the other hand, implicit costs are essentially opportunity costs, such as the income you could have earned had you been working instead of attending college.

These reflect the economic principle that resources have alternative uses and choosing one option involves a trade-off with the next best alternative.