Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The income you forego by not working immediately is the opportunity cost, which can be weighed against the potential additional utility from a college degree.
B
The cost of tuition is the only opportunity cost to consider in this decision.
C
The enjoyment of college life is not an opportunity cost as it does not involve monetary loss.
D
The savings from working immediately outweigh the benefits of attending college.
Understanding the Answer
Let's break down why this is correct
Answer
Opportunity cost is the value of what you give up when you make a choice. When deciding whether to attend college or start working right away, you should consider the benefits of each option. The marginal benefit of going to college might include higher future earnings and gaining valuable skills, while the utility refers to the satisfaction you get from each choice. For example, if you choose to attend college, you might miss out on earning money immediately, but the long-term benefits could outweigh that loss. Understanding opportunity cost helps you weigh these options carefully to make the best decision for your future.
Detailed Explanation
When you choose college, you miss out on the money you could have earned by working. Other options are incorrect because This answer suggests that tuition is the only cost, but that's not true; This answer thinks enjoyment doesn't count as a cost.
Key Concepts
marginal benefit
utility
Topic
Analyzing Opportunity Costs
Difficulty
medium level question
Cognitive Level
understand
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