A college student could be working as a waiter and earning US$20,000 annually. However, he is attending college and forgoing that income. This is an example of the ______ to attend college, a cost that the student hopes will be worth the investment in the long run.
A) discount
B) risk evaluation
C) opportunity cost
D) efficiency

Question

Quizplus · Accepted Answer

This situation describes the concept of opportunity cost, which is the cost of forgoing one option in order to pursue another. In this case, the student is choosing to forgo the income they could earn as a waiter in order to attend college, with the hope that the long-term benefits of a college education will outweigh the opportunity cost of not earning that income. Choices A, B, and D are not relevant to this concept.

A College Student Could Be Working as a Waiter and Earning