SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If you pay $5, 000 a year in tuition and give up $20, 000 a year of income to attend college, then the yearly opportunity cost of college is:
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only $5, 000 of tuition.
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only $20, 000 of foregone income.
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at least $25, 000 of tuition and foregone income.
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less than $20, 000 and more than $5, 000.
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Explanation:
Detailed explanation-1: -Therefore, money spent on living expenses that are the same should not be considered as an opportunity cost of attending college.
Detailed explanation-2: -The opportunity cost of attending college is likely to be the highest for a high school graduate who started a successful high school business. Opportunity cost is the value of the next best alternative or the loss of value that a person could have achieved if the other course of action had been chosen.
There is 1 question to complete.