As the Term "Opportunity Cost" Is Defined in the Text

question 102

Multiple Choice

As the term "opportunity cost" is defined in the text, the opportunity cost of going to college includes

• A)both tuition and the value of the student's time.
• B)tuition but not the value of the student's time, which is a cash cost.
• C)the value of the student's time but not tuition, which is a monetary cost.
• D)neither tuition nor the value of the student's time, since obtaining a college degree makes one's income higher in the future.
• E)neither tuition nor the value of the student's time, at least at subsidized state universities.

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Definitions:

Cash Flow From Operations

The portion of cash flow that results directly from a company's regular business operations, excluding financing or investing activities.

Depreciation

The systematic reduction in the recorded cost of a fixed asset to allocate its cost over its useful life, reflecting wear and tear, decay, or obsolescence.

Net Income

The total profit or loss of a company after all expenses, including taxes and operating costs, have been deducted from revenues.

Indirect Method

The indirect method is a way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.