The opportunity cost of attending university for a year is measured by:
A)the tuition fees incurred.
B)the size of the student loan the student becomes responsible for.
C)the sum of all expenditures on rent, food, books, and tuition incurred during the school year.
D)the value of the best opportunity or opportunities foregone in order to enroll for the year.
E)the sum of expenditures on tuition and hostel fees.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that must be forgone in order to pursue a certain action. Therefore, the opportunity cost of attending university for a year is the value of the best opportunity or opportunities that are foregone while attending the university. The other options only account for specific expenses incurred during the year, but not the value of the foregone opportunities.

The Opportunity Cost of Attending University for a Year Is