📚 Learning Guide
Understanding Opportunity Costs
easy

What is the opportunity cost of attending college instead of working full-time for a year?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

The tuition fees paid for college

B

The salary foregone from not working

C

The experience gained in college

D

The cost of textbooks

Understanding the Answer

Let's break down why this is correct

Answer

Opportunity cost is what you give up when you make a choice. If you choose to attend college instead of working full-time for a year, the opportunity cost includes the money you could have earned from a job, as well as the experience and skills you would have gained by working. For example, if a full-time job would pay you $30,000 for the year, that money is part of your opportunity cost. You also miss out on the chance to start your career early, which could lead to promotions or raises. So, while college can provide valuable education, you must consider what you are giving up by not working.

Detailed Explanation

The opportunity cost is what you give up when you make a choice. Other options are incorrect because Some might think the tuition fees are the main cost; Gaining experience in college is valuable, but it doesn't count as a cost.

Key Concepts

trade-offs
Topic

Understanding Opportunity Costs

Difficulty

easy level question

Cognitive Level

understand

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