Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The potential income from the business
B
The cost of tuition and books
C
The knowledge gained from education
D
The time spent studying
Understanding the Answer
Let's break down why this is correct
Answer
When you choose to invest in education instead of starting a business, the opportunity cost is what you give up by not starting that business. This could include the money you might have made from running the business and the experience you would gain from being an entrepreneur. For example, if you could have earned $30,000 in your first year of business, that amount is one part of the opportunity cost. Additionally, you miss out on the chance to develop skills and connections in the business world. Understanding this helps you see the trade-offs involved in your decision.
Detailed Explanation
When you choose education, you miss out on the money you could have made from starting a business. Other options are incorrect because Some might think that the money spent on school is the cost; People might believe that the learning itself is the cost.
Key Concepts
opportunity cost
trade-offs
decision-making
Topic
Understanding Opportunity Costs
Difficulty
hard level question
Cognitive Level
understand
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