1. Understanding opportunity cost
Before you started applying for college, you were offered a full-time position as a cashier at a local department store earning an after-tax salary of $28,000 per year. However, you turned down this offer and decided to attend your first year of college. The additional monetary cost of college to you, including tuition, supplies, and additional housing expenses, is $28,000.
You decided to go to college, probably because you value a year college at
more than $56,000.
Econ 20A -- Basic Economics 