Multiple Choice
Which of the following statements about scarcity is true?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following best describes the opportunity cost of not going to college?
A
The tuition fees and expenses you save by not attending college
B
The time spent commuting to and from college
C
The value of the income and experiences you would have gained by attending college
D
The cost of textbooks and supplies required for college courses
Verified step by step guidance1
Understand the concept of opportunity cost: it is the value of the next best alternative foregone when making a decision.
Identify the alternatives involved in the decision: going to college versus not going to college.
List the costs and benefits associated with attending college, such as tuition fees, expenses, time spent commuting, income foregone, and experiences gained.
Recognize that the opportunity cost of not going to college is what you give up by choosing not to attend, which includes the income and experiences you would have gained.
Compare the options given and select the one that represents the value of the foregone benefits (income and experiences), as this best captures the opportunity cost.
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