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PAPER CURRENCY: Paper usually issued by the national government that are used as money. Metal coins are also frequently included under the generic heading of currency. Currency in the U.S. economy is issued by the Federal Reserve System (paper) and the U.S. Treasury (coins). This constitutes about 30 to 40 percent of the M1 money supply. Most modern currency is fiat money.
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Lesson 3: Scarcity | Unit 4: College Cost
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Page: 12 of 17
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An example of the opportunity cost of attending college.- Tuition, fees, textbooks, sliderule, etc. ($932.71 per semester) is an explicit opportunity cost.
- The opportunity cost is all other things that you could have bought with this money-fuzzy dice, hot fudge sundaes, a used Ford Pinto, music CDs.
- The tuition cost of your college degree is the added up over all semesters ($7,461,68).
However, the TOTAL COST actually goes well beyond this explicit $7,461,68 payment, since there are other costs that don't involve a money payment:- By attending school you have foregone alternative activities like working.
- Unearned income, $15,000 per year, $60,000 for four years, is an extremely important implicit opportunity cost of a college education.
- Implicit opportunity costs need not have a dollar value attached.
- The foregone satisfaction from activities like watching television or sleeping, are also implicit opportunity costs.
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OPPORTUNITY COST The highest valued alternative foregone in the pursuit of an activity. Opportunity cost is a one of the most fundamental concepts used in the study of economics. An opportunity cost can be either explicit, usually involving a monetary payment, or implicit, which does not involve a transaction. Opportunity cost is also commonly termed economic cost.
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GRAY SKITTERY
[What's This?]
Today, you are likely to spend a great deal of time strolling through a department store trying to buy either a genuine down-filled snow parka or throw pillows for your living room sofa. Be on the lookout for the happiest person in the room.
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This isn't me! What am I?
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A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
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"It's usually the last ounce of effort that tips the scales of success." -- Rick Beneteau
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CACM
Central American Common Market
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