Multiple Choice
According to Dwight Eisenhower, what did he identify as the opportunity cost of the nuclear buildup in the context of scarcity?
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0. Basic Principles of Economics
Scarcity and Choice
Multiple Choice
Which of the following is NOT a possible opportunity cost of attending college?
A
The income you could have earned by working full-time instead of attending college
B
The tuition and fees paid to the college
C
The cost of textbooks that you can resell for the same price after graduation
D
The leisure time you give up to study and attend classes
Verified step by step guidance1
Understand the concept of opportunity cost: it represents the value of the next best alternative foregone when making a decision.
Identify all costs associated with attending college, including explicit costs (like tuition and fees) and implicit costs (like foregone income and leisure time).
Analyze each option to determine if it represents a true opportunity cost. For example, foregone income and tuition are costs that cannot be recovered and thus count as opportunity costs.
Consider the cost of textbooks that can be resold for the same price after graduation. Since you can recover the full cost by reselling, this does not represent a net cost and therefore is not an opportunity cost.
Conclude that the item which does not reduce your net resources or benefits (the resellable textbooks) is NOT a possible opportunity cost of attending college.
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