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Question
Macroeconomics
Posted 10 months ago

All of the following are part of the opportunity costs of going to college EXCEPT

Choose 1 answer:
(A) The money spent on tuition
(B) Interest payments on student loans
(c) Money spent on textbooks

D Foregone wages given up to attend college
(E) Money spent on clothes
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Answer from Sia
Posted 10 months ago
Solution
a
Definition of Opportunity Cost: Opportunity cost refers to the value of the next best alternative that is foregone when a decision is made
b
Identifying Costs: The opportunity costs of going to college include all the resources and time that could have been used elsewhere
c
Analyzing Options: - (A) The money spent on tuition is a direct cost and part of the opportunity cost. - (B) Interest payments on student loans are also part of the opportunity cost. - (C) Money spent on textbooks is a direct cost and part of the opportunity cost. - (D) Foregone wages given up to attend college are part of the opportunity cost. - (E) Money spent on clothes is not directly related to attending college and is not part of the opportunity cost
Answer
(E) Money spent on clothes
Key Concept
Opportunity Cost
Explanation
Opportunity cost includes all the resources and time that could have been used elsewhere, except for expenses not directly related to the decision, such as money spent on clothes.

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