What is the opportunity cost of going to university?
A) the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses
B) the value of the best opportunity a student gives up to attend university
C) zero, for students who are fortunate enough to attend on a scholarship
D) zero, because a college education will allow a student to earn a larger income after graduation

Question

Quizplus · Accepted Answer

The opportunity cost of going to university is the value of the best opportunity a student gives up to attend university. This refers to the benefits or opportunities that the student must sacrifice or forego because they have chosen to attend university instead. Option A is simply the total expenses incurred as a result of attending university and does not capture the true nature of the opportunity cost. Option C and D are both incorrect as they negate the concept of opportunity cost altogether.

What Is the Opportunity Cost of Going to University