Asked by albandari aljuaid on May 04, 2024
Verified
Suppose that Rosa is considering migration to another country. To move, she will have to spend $4,000 on transportation and $6,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $400,000. She expects to earn a stream of future earnings of $750,000 in another country. Based on this information, Rosa's explicit cost of migrating is
A) $400,000.
B) $10,000.
C) $410,000.
D) $350,000.
Explicit Cost
Direct payment made to others in the process of running a business, such as wages, rent, and materials.
Future Earnings
The projected income a person or entity will receive from work or investments in the future.
Migration
The movement of people from one place to another, often across political boundaries, for the purpose of settling temporarily or permanently.
- Understand the factors that influence an individual's decision to migrate, including explicit and implicit costs, and the impact on future earnings.
Verified Answer
PG
Peyton GrahamMay 08, 2024
Final Answer :
B
Explanation :
The explicit cost of migrating includes the tangible, out-of-pocket expenses such as transportation and processing fees, which total $4,000 + $6,000 = $10,000.
Learning Objectives
- Understand the factors that influence an individual's decision to migrate, including explicit and implicit costs, and the impact on future earnings.