Question

The opportunity cost of going to university is Select one: a. the sum of all the money a student spends on food, clothing, books, transportation, tuition, lodging and other expenses b. the value of the best opportunity a student gives up to attend university c. zero for students who are fortunate enough to have all of their university expenses paid by someone else d. zero, since a university education will allow a student to earn a larger income after graduation

Answer 1

The opportunity cost of an action is the cost of another action that has to be foregone in order to undertake the said action.

When a person goes to university then, in that case, he or she have to give up some other tasks that they could have udertaken if they would not have gone to University.

For instance, a person might take up a job if he or she does not go to University.

So,

The opportunity cost is the implicit cost and is different from the explicit cost such as money expenditure incurred to obtain the university education.

Thus,

The opportunity cost of going to university is the value of the best opportunity a student give up to attend university.

Hence, the correct answer is the option (b).