The opportunity cost doctrine suggests that which of the following are not costs of government educational programs?
A)The wages of teachers.
B)The foregone earnings of participants.
C)Stipends paid to participants.
D)Materials used by students.

Question

Quizplus · Accepted Answer

The opportunity cost doctrine states that the true cost of any choice includes not only the explicit costs, but also the implicit costs or the benefits foregone. Therefore, the foregone earnings of participants (option B) would be included in the cost of government educational programs as it represents the implicit cost. However, stipends paid to participants (option C) represent a benefit received by the participants, and therefore, are not considered a cost of government educational programs. The wages of teachers (option A) and materials used by students (option D) are explicit costs of government educational programs and are considered part of the total cost.

The Opportunity Cost Doctrine Suggests That Which of the Following