The salary that is sacriﬁced by a college student who pursues a degree full time is a(n):
A)sunk cost.
B)out-of-pocket cost.
C)opportunity cost.
D)differential cost.
E)marginal cost.

Question

Quizplus · Accepted Answer

The salary a college student gives up by pursuing a degree full time is a perfect example of an opportunity cost. Opportunity cost is the cost of the next best alternative foregone, which, in this case, would be the salary the student could have earned if they had chosen to work full time instead of pursuing a degree.

The Salary That Is Sacriﬁced by a College Student Who