Asked by Tasha Christina on Jun 15, 2024
Verified
Suppose that Rosa is considering migration to another country. To move, she will have to spend $5,000 on transportation and $4,000 in application and other processing fees. Rosa's stream of future earnings in her home country is $500,000. She expects to earn a stream of future earnings of $800,000 in another country. Based on this information, Rosa's explicit cost of migrating is
A) $500,000.
B) $9,000.
C) $509,000.
D) $5,000.
Explicit Cost
Funds transferred to parties outside of the company as part of its operational expenses, encompassing staff wages, property lease payments, and material purchases.
Migration
The movement of people from one region to another for the purpose of settlement, often driven by economic, social, or political factors.
- Contrast between direct and indirect financial implications of migration and their role in influencing migration intentions.
Verified Answer
MA
Maysa Al-HijaziJun 18, 2024
Final Answer :
B
Explanation :
The explicit cost of migrating includes the tangible, out-of-pocket expenses such as transportation and application fees, which total $5,000 + $4,000 = $9,000.
Learning Objectives
- Contrast between direct and indirect financial implications of migration and their role in influencing migration intentions.
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