In an Attempt to Boost Enrollment, in January, 1996, a Private

question 130

Multiple Choice

In an attempt to boost enrollment, in January, 1996, a private college in Iowa offered free tuition for graduating high school seniors from the county where it is located.For students who accepted the offer, how did this offer affect the opportunity cost of attending college?

• A)The opportunity cost did not change, since lost earnings were still a factor.
• B)The opportunity cost became zero for the typical student.
• C)The opportunity cost was very low, because the only cost was for books and supplies.
• D)The opportunity cost did not change, since tuition was not a factor in computing opportunity cost.
• E)The opportunity cost was lower than if tuition was charged, but there was still a cost.

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Definitions:

Forged Maker's Signature

An illegal alteration or the unauthorized signing of a document by someone other than the individual purportedly doing the signing.

Antedated

Refers to something that precedes another thing in time, especially a document or statement that bears a date earlier than the actual date of execution.

HDC Status

A legal term describing the status of a holder in due course, who acquires a negotiable instrument under certain conditions, granting them rights free from many defenses.

Sufficient Consideration

Consideration in contract law that is adequate and meets legal requirements, ensuring the contract is binding and enforceable.