The Opportunity Cost of Going to College or University for Four

question 85

Multiple Choice

The opportunity cost of going to college or university for four years is

• A)equal to the wage rate a person will earn after graduation.
• B)the least valued alternative one forfeits to attend.
• C)the cost of tuition and books and four years of lost wages from employment.
• D)the cost of tuition,residence fees and books.
• E)zero.

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Definitions:

Basic Accounting Equation

An equation representing the relationship between a company's assets, liabilities, and shareholders' equity (Assets = Liabilities + Equity).

Transactions

Any business activity that involves the exchange of goods, services, or money between two or more parties.

Total Assets

The sum of all current and non-current assets owned by a business.

Owner's Equity Statement

A financial document showing the changes in the equity of a business entity over a period, including investments, withdrawals, and net income or loss.