Author Question: Why would an economist argue that tuition is not the largest cost of attending a state university? ... (Read 84 times)

mydiamond · **on:** Jun 29, 2018

Why would an economist argue that tuition is not the largest cost of attending a state university?

What will be an ideal response?

Question 2

Money cannot serve as a medium of exchange unless it also serves as a store of value. Is this statement true or false? Explain.

What will be an ideal response?

itsakadoozi · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

The largest cost of attending a university is the opportunity cost of the student's time. This could be measured by the foregone income that could have been earned if the student worked instead of attending classes.

Answer to Question 2

This statement is true. If money does not hold its value over time, it will not be accepted in exchange for goods and services. I must be confident that money I accept today for a good or service rendered will be considered valuable tomorrow when I seek to trade it for a good or service. Lacking that confidence I will not accept money today.