A full-time college student could drop out in his senior year and get a job paying $19,500.By finishing school,he incurs an opportunity cost equal to
A) the college degree he gave up to take the job.
B) the college tuition he would otherwise pay.
C) the difference between the cost of tuition and $19,500.
D) $19,500.
E) zero.

Question

Quizplus · Accepted Answer

The opportunity cost is the value of the next best alternative forgone. In this case, by choosing to finish school instead of working, the student gives up the opportunity to earn $19,500, making that the opportunity cost.

A Full-Time College Student Could Drop Out in His Senior