- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 2. Economic Profit vs. Accounting Profit
CFA Practice Question
Which of the following is an implicit (opportunity) cost of attending college?
II. Tuition
III. The cost of books
IV. The cost of food
V. The cost of housing
I. The wages that you could have been earning
II. Tuition
III. The cost of books
IV. The cost of food
V. The cost of housing
Correct Answer: I
Tuition and the cost of books are explicit costs. Food and housing are not opportunity costs because you have to live somewhere and eat regardless of your occupation. However, you are implicitly giving up the wages that you could have earned.
User Contributed Comments 7
| User | Comment |
|---|---|
| ljamieson | and CFA reg fees!! |
| Farina | ...+ 2hrs a day that could have been spent doing something else... |
| MMattioli | CFA reg fees would be explicit cost....duh... lol |
| haosheng | 3 years of your life energy on CFA exams instead of having fun, family, babies,..... :( |
| GeeMan | not to mention the quality halo time I have given up! |
| GamePlayer | Is it all worth it? |
| choas69 | this question is here to clear the confusion, thank you. |