Suppose that your tuition to attend college is $5,000 per year and you spend $5,000 per year on room and board. If you were working full time, you could earn $22,000 per year. What is your opportunity cost of attending college?
A) $13,000
B) $35,000
C) $27,000
D) $30,000

Question

Quizplus · Accepted Answer

The opportunity cost of attending college is the income you could have earned if you were not in college. In this case, if you were working full time, you could earn $22,000 per year. However, by attending college, you are giving up that income, plus the additional expenses of tuition and room and board. Therefore, your opportunity cost of attending college would be the $22,000 you could have earned plus the $5,000 for tuition and $5,000 for room and board, which equals $32,000. However, since you would still need to pay for room and board even if you were not in college, the true opportunity cost is $22,000 (income you could have earned) plus $5,000 (tuition), which equals $27,000.

Suppose That Your Tuition to Attend College Is $5,000 Per