Opportunity+cost?+What+are+explicit+and+implicit+costs?+What+is++the+biggest+cost+of+going+to+medical+school?+Costs+-&nbsp;What+are+direct+costs,++direct+non-medical+costs,+indirect+costs?

Opportunity costs are the value of the next best alternative that is given up. Opportunity costs are fundamental to accessing the time costs of any course of action. An example of opportunity costs would be if Indianapolis decided to build a hospital on vacant land that it owns, the opportunity cost is some other thing that might have been done with the land.
 * What are opportunity costs?**

Implicit costs are costs that are related to foregone benefits of any transaction. Costs that for-go an alternative action but never make a physical paymnet. Expertise in health care costs include some activities of measuring implicit and explicit (pain and suffering) cost of illness. Explicit costs represent clear and obvious cashflows from a business that reduce its bottom line production. An example of an explicit cost would be the cost of materials that go into the production of medical goods.
 * What are implicit and explicit costs?**

The biggest cost of going to medical school, is what you would give up in order to go to medical school. Monetary costs are involved, but you will be spending between 6-10 years in medical school. If you were not in school you could be working and earing and income rather than going to medical school.
 * What is the biggest cost of going to medical school?**

There is a difference between direct and indirect costs. Direct costs are costs that can be identified specifically with a particular sponsered project, directly assigned with an activity. Costs associated with a particular cost object. Indirect costs are variable manufactured overhead costs that are not direct costs. An example of an indirect cost would be loss of production. An example of direct costs would be health care services, loss of personal property, medicine, and transportation. Santerre, Rexford E. and Neun, Steven P. __Health Economcis:Theories, Insights, and Industry Studies:__ Thompson South-Western. 2007 Pg. 54 Opportunity Costs. (2007) In Wikipedia [Web]. Wikimedia Foundation, Inc. Retrieved. April 25, 2007 from, [|www.wikipedia.com]
 * What are direct, indirect, and direct non-medical costs?**
 * References:**

1. True or False. Opportuinty costs are vaules of the next best alternative that is given up. (answer is true)
 * Sample Test Questions:**

2. Explain the difference between a direct and indirect cost. (answer Direct costs are assigned with an activity and indirect costs are variable manufactured overhead costs.)

3. Provide a real life example of an opportunity cost. (answer invest in a stock with a 2% return rate. In placing your money in the stock you gave up the opportunity of another investment. Another stock investment of a 6% yield. The opportunity cost would then be 4%)

4. Why is opportunity cost important in economics? (answer economics is an efficient use of scarce resources, and opportunity cost plays a crucial part in maintaining that resources are being used efficiently.)