Jamie and Danny both attend the same college and incur the same expenses for tuition, books, and school supplies. Jamie gave up a lucrative modeling job in Paris to attend school full-time and Danny gave up a part-time job as a sales clerk in a department store. It follows that:
A)the opportunity cost of attending college is the same for both since they are enrolled at the same academic institution.
B)the opportunity cost of attending college is likely greater for Jamie than for Danny.
C)the opportunity cost of attending college is likely greater for Danny than for Jamie.
D)the opportunity cost is minimal for both since college graduates are paid much higher than high school graduates on average.

Question

Jamie and Danny both attend the same college and incur the same expenses for tuition, books, and school supplies. Jamie gave up a lucrative modeling job in Paris to attend school full-time and Danny gave up a part-time job as a sales clerk in a department store. It follows that:​
A)​the opportunity cost of attending college is the same for both since they are enrolled at the same academic institution.
B)​the opportunity cost of attending college is likely greater for Jamie than for Danny.
C)​the opportunity cost of attending college is likely greater for Danny than for Jamie.
D)​the opportunity cost is minimal for both since college graduates are paid much higher than high school graduates on average.

Quizplus · Accepted Answer

Opportunity cost is the value of the next-best alternative that must be sacrificed to pursue a certain action. Jamie gave up a lucrative modeling job, which implies that she had a higher opportunity cost for attending college. On the other hand, Danny gave up a part-time job, which may not have been as valuable as a lucrative modeling job. Therefore, the opportunity cost of attending college is likely greater for Jamie than for Danny.

Jamie and Danny Both Attend the Same College and Incur