ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Because you chose to go to college instead of working, your opportunity cost is actually the sum of your college expenses plus the money you could have earned had you chosen not to work.

Detailed explanation-2: -The opportunity cost of attending college is everything you give up to attend college. You gave up income by going to class instead of working. You gave up money for tuition and textbooks. One thing you don’t give up is the cost of haircuts.

Detailed explanation-3: -What are some other examples of opportunity cost? A student spends three hours and $20 at the movies the night before an exam. The opportunity cost is time spent studying and that money to spend on something else.

Detailed explanation-4: -An opportunity cost is defined as the value of a forgone activity or alternative when another item or activity is chosen. Opportunity cost comes into play in any decision that involves a tradeoff between two or more options. It is expressed as the relative cost of one alternative in terms of the next-best alternative.