If your tuition is $5,000 this semester, your books cost $600, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $3,000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is
A) $5,600.
B) $5,900.
C) $10,100.
D) $11,600.

Question

Quizplus · Accepted Answer

The opportunity cost of attending college includes the tuition ($5,000), the cost of books ($600), and the lost wages due to reduced work hours. Normally, working 40 hours a week for 15 weeks at $15 per hour would yield $9,000 (40 hours * 15 weeks * $15/hour). However, since you can only work 20 hours a week, you earn $4,500 (20 hours * 15 weeks * $15/hour), which means you lose out on $4,500 in wages. Adding these costs together ($5,000 + $600 + $4,500), the total opportunity cost is $10,100. Room and board are not included in the calculation since the cost is the same whether or not you attend college.

If Your Tuition Is $5,000 This Semester, Your Books Cost