After graduating from high school,Steve had the following three choices for his immediate future,listed in order of preference: (1)attend our campus, (2)work in a printed circuit board factory,or (3)attend a rival college.His opportunity cost of going to college here includes which of the following?
A) The cost of books and supplies at the rival college
B) The income he could have earned at the printed circuit board factory plus the direct cost of attending college here (tuition,textbooks,etc. )
C) The benefits he could have received from going to the rival college
D) Only the tuition and fees paid for taking classes here
E) Cannot be determined from the information given

Question

Quizplus · Accepted Answer

The opportunity cost of attending our campus includes not only the direct costs of tuition, textbooks, and other expenses but also the income he could have earned at the printed circuit board factory. This is because he has to give up his earning potential if he chooses to go to college instead. Option A only considers the cost of books and supplies at the rival college, which is not relevant here. Option C only considers the benefits of attending a rival college, which is not relevant for calculating opportunity cost. Option D is not correct since it only considers the direct cost of tuition and fees paid for taking classes, ignoring the income he could have earned working in the factory. Therefore, the correct answer is B.

After Graduating from High School,Steve Had the Following Three Choices