Multiple Choice
Which of the following contributes to the economic problem of scarcity?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following best describes the opportunity cost of going to college?
A
The income you could have earned by working instead of attending college
B
The tuition fees paid to the college
C
The time spent studying for exams
D
The cost of textbooks and supplies required for college courses
Verified step by step guidance1
Step 1: Understand the concept of opportunity cost, which is the value of the next best alternative foregone when making a decision.
Step 2: Identify the alternatives to going to college. In this case, one main alternative is working and earning income instead of attending college.
Step 3: Recognize that opportunity cost includes both explicit costs (like tuition fees and textbooks) and implicit costs (like foregone income).
Step 4: Compare the options given: tuition fees, time spent studying, cost of textbooks, and income foregone by not working.
Step 5: Conclude that the best description of opportunity cost here is the income you could have earned by working instead of attending college, as it represents the next best alternative foregone.
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