Question

which best represents the opportunity cost of going to school?

Answer 1

The opportunity cost means the value of the next highest alternative which is given up to get something else.

Here, when you are going to school, the next highest valued alternative which you value is your opportunity cost. For example, instead of going to school, you have two alternatives, one is spending that leisure time doing your favourite hobby such as playing with your friends or spending that time earning in a restaurant at $8 per hour.

In this case, you have to place a certain value to each of these activities. Lets say, your value for going to school and gaining knowledge and a school degree is $10 per hour, value for playing with friends is $5 per hour and the value for working part time is $8 per hour. So here, the opportunity cost for going to school would be working part time since that is the next highest valued alternative.