Fundamentals of Economics. Доловова Н.Н - 11 стр.

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Consider, for example, the decision whether to go to college. The benefit is
intellectual enrichment and a lifetime of better job opportunities. But what is the
cost? To answer this question, you might be tempted to add up the money you spend
on tuition, books, room, and board. Yet this total does not truly represent what you
give up to spend a year in college. The first problem with this answer is that it
includes some things that are not really costs of going to college. Even if you quit
school, you would need a place to sleep and food to eat. Room and board are costs of
going to college only to the extent that they are more expens ive at college than
elsewhere. Indeed, the cost of room and board at your school might be less than the
rent and food expenses that you would pay living on your own. In this case, the
savings on room and board are a benefit of going to college.
The second problem with this calculation of costs is that it ignores the largest
cost of going to college—your time. When you spend a year listening to lectures,
reading textbooks, and writing papers, you cannot spend that time working at a job.
For most students, the wages given up to attend school are the largest single cost of
their education.
The opportunity cost of an item is what you give up to get that item. When
making any decision, such as whether to attend college, decision makers should be
aware of the opportunity costs that accompany each possible action. In fact, they
usually are. College-age athletes who can earn millions if they drop out of school and
play professional sports are well aware that their opportunity cost of college is very
high. It is not surprising that they often decide that the benefit is not worth the cost.
Key concepts
opportunity cost – whatever must be given up to obtain some
item
Words to remember
benefit - выгода; польза; прибыль; преимущество
obvious - очевидный, явный
as it might first appear - как может показаться с первого взгляда
enrichment - обогащение
tuition - обучение
to add up - складывать, подс читыва ть, подытож ивать;
находить сумму
food expenses - расходы на еду
wages - заработок, доход, вознаграждение
cost - цена, стоимость;
расход; расходование

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