Suppose that a policy maker is considering offering free college tuition to all low-to-moderate income families in your state. There are currently 1,000 students attending college who would meet the income qualification to receive free tuition, and tuition is $10,000 per year. Which of the following is true?

1).Some of the students will be disincentived from attending college because they will have to apply for the program.

2)The $10,000 is a sunk cost that policymakers shouldn't consider when estimating the funds needed to administer this program.

3) Free tuition will incentivize more students to attend college, and this program will cost more than $10 million per year.

4) This program will cost the state approximately $10,000 million per year.