ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Zero.
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II only.
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The sum of I, II, III, and any other opportunities she passed up.
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Whichever of I, II, III or any other opportunities she passed up is most valuable to her.
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Detailed explanation-1: -For instance, going to college for four years has various opportunity costs. Foremost, the student misses the chance to get full employment and earn money for four years. Moreover, they also lose the opportunity to use the tuition fees to start and operate their own business, generating more income.
Detailed explanation-2: -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-3: -Answer and Explanation: The answer is False. Opportunity costs are the benefits from the next best alternative the decision-maker chooses. The next best choice for each college student is unique.
Detailed explanation-4: -On average, three-fourths of the private cost of a college education–the cost borne by the student and the student’s family–is the income that college students give up by not working. A good measure of this “opportunity cost” is the income that a newly minted high school graduate could earn by working full-time.