According to this definition, the opportunity cost of going to college from the options given would be the money you could have earned at a job because working will be the alternative of going to college and the cost wil be the money you won’t receive as this alternative was not taken.
What is the opportunity cost of going to college?
In short, the opportunity cost of attending 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.
Which of the following would not be part of the opportunity costs of going to college?
Which of the following would NOT be part of the opportunity costs of going to college? Money spent on clothes. You would have had to buy clothes whether you attended college or not. All the other costs could have been avoided had you decided not to attend college.
Which example is an example of an opportunity cost of going to class?
To attend my two hour morning class I had to give up two extra hours of sleep. So the opportunity cost of attending my class is the sleep I had to forgo. Jack did the reverse. He slept for an extra two hours, rather than attend class.
How is opportunity cost defined?
How is opportunity cost defined in everyday life? “Opportunity cost is the value of the next-best alternative when a decision is made; it’s what is given up,” explains Andrea Caceres-Santamaria, senior economic education specialist at the St. Louis Fed, in a recent Page One Economics: Money and Missed Opportunities.
What is an opportunity cost example?
When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.
Why is going to college an example of opportunity cost quizlet?
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. Your opportunity cost to attend college is $260k. You just studied 48 terms!
What is the opportunity cost of earning an advanced college degree is that?
The college fee per year is $30k plus expenses. After 4 years, you will be out $120k. The opportunity cost in this case will be $240k since you chose to go to college instead of working. Thus, you will earn less or no money during the years that you are in college.
Who benefits most from free higher education?
Students who enrolled full time at four-year universities for their first year of college, as opposed to those who enrolled part time or went to community college, reaped the most benefits from free tuition.
What is opportunity cost and its importance in decision making?
“Opportunity cost is the cost of a foregone alternative. If you chose one alternative over another, then the cost of choosing that alternative is an opportunity cost. Opportunity cost is the benefits you lose by choosing one alternative over another one.”
What are the types of opportunity cost?
This distinction gives rise to two types of opportunity cost–explicit and implicit.
- Explicit Cost: This is an opportunity cost that involves a money payment and usually a market transaction. …
- Implicit Cost: This is an opportunity cost that DOES NOT involve a money payment or market transaction.