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

Question

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

Accepted Answer

∻Solution by Steps∻ ‖ step 1 ⋮ Identify the components of opportunity cost for attending college. Opportunity cost includes all costs associated with the next best alternative forgone when making a decision. ‖ ‖ step 2 ⋮ Analyze each option to determine which one is not a cost of the next best alternative forgone. (A) The money spent on tuition, (B) Interest payments on student loans, (C) Money spent on textbooks, and (D) Foregone wages given up to attend college are all costs that would not be incurred if the individual chose not to attend college. ‖ ‖ step 3 ⋮ Determine which option is a cost that would likely be incurred regardless of the decision to attend college. ‖ ∻Answer∻ ***E*** ∻Key Concept∻ ⚹Opportunity Cost⚹ ∻Explanation∻ ⚹Opportunity cost includes all costs associated with the next best alternative forgone, not costs that would be incurred regardless of the decision. Money spent on clothes is a cost that would likely be incurred regardless of attending college, hence it is not part of the opportunity cost of going to college.⚹◊What type of statistical analysis could be used to determine the impact of opportunity costs on a person's decision to attend college?⍭ Generate me a similar question◊

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