Tim. This is my first economics course, and many of the concepts discussed in class are really confusing. Today the professor explained that the true cost of going to college includes both the tuition I pay as well as something called the "opportunity cost" of going to college. I don't understand. I pay $32,000 per year in tuition. The tuition is what I pay to the school, so it seems like that should be my tr
Consider the following dialogue between Raphael, a student in an introductory economics class, and Raphael's teaching assistant, Tim.
RAPHAEL: Hi, Tim. This is my first economics course, and many of the concepts discussed in class are really confusing. Today the professor explained that the true cost of going to college includes both the tuition I pay as well as something called the "
TIM: Hi, Raphael. Many concepts in economics can be confusing at first. Let's talk it through.
RAPHAEL: I think I get it now. So when I take into account the opportunity cost of college, the true cost is actually _________ (choices: lower, higher) than just the tuition.
TIM: Correct. Thinking about costs in this way will help you make more rational decisions in your everyday life. Now tell me, how can you explain your decision to go to college?
RAPHAEL: I chose to go to college because, for me, the value of a year in college _______ (choices: falls shot of the total cost, exceeds the total cost, falls short of the opportunity cost).
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