ECONOMICS
COST BENEFIT ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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I only
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II only
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III only
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I and III only
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I, II, and III
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Detailed explanation-1: -In short, the opportunity cost of going to college is the cost of tuition, any associated costs, and any income, experience, and pleasure you miss out on because you choose to attend college.
Detailed explanation-2: -The correct answer is b. Benefits foregone by not choosing an alternative course of action.
Detailed explanation-3: -The opportunity cost of a person attending college is the value of the best alternative use of that person’s time, as well as the additional costs the person incurs by making the choice to attend college.
Detailed explanation-4: -Opportunity Cost is when in making a decision the value of the best alternative is lost. e.g. choosing electricity over gas, the opportunity cost is what you’ve lost from not picking gas.