The opportunity cost of working rather than going to school is
A) the cost of food and housing.
B) the cost of clothing and transportation.
C) zero because the person is earning an income by working.
D) the higher wages that come with additional education.
E) the annual wages earned by working.

Question

Quizplus · Accepted Answer

The opportunity cost of working rather than going to school is the potential earnings that could have been earned with additional education. These potential earnings are represented by the higher wages that come with additional education. Therefore, choice D is the best answer. Choices A, B, C, and E are incorrect because they do not capture the full potential earnings that could have been gained from going to school instead of working.

The Opportunity Cost of Working Rather Than Going to School