CFA Practice Question

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CFA Practice Question

Which of the following is an implicit (opportunity) cost of attending college?

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.
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