Oportunity Costs

 

Let’s discuss the cost of attending college. Some of the more common expenses that come to mind include the explicit costs of tuition, books, and room and board. But what about the implicit costs or what are known as opportunity costs? Even though these are implicit costs, they most certainly are real costs!

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Let’s explore the idea that cost is not always an explicit payment but also a loss. Considering this what would you list as implicit or opportunity costs that you have incurred as a result of your decision to attend school?

What would be some opportunity costs if you decided not to attend college?

Explain why scarcity leads to tradeoffs. Explain why individuals make choices that are directly on the budget constraint, rather than inside the budget constraint or outside it.

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