The opportunity cost of attending college
A)is zero because the return is always positive.
B)includes the skills earned from attending college.
C)is the living expenses, which are the same whether the students attend college or not.
D)includes the lost incomes that would have been earned if the student had not attended college.
E)includes the scholarships for attending college.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative that must be given up in order to pursue a certain action. In the case of attending college, the opportunity cost is the lost incomes that would have been earned if the student had not attended college. This is because the student would have had the option to enter the workforce immediately and earn an income. While attending college may lead to higher future earnings, there is still an opportunity cost in the form of the lost current income.

The Opportunity Cost of Attending College