Suppose That Your Tuition to Attend College Is $24,000 Per

question 108

Multiple Choice

Suppose that your tuition to attend college is $24,000 per year and you spend $8,000 per year on room and board. If you were working full time, you could earn $30,000 per year. What is your opportunity cost of attending college for one year?

• A) $32,000
• B) $38,000
• C) $54,000
• D) $62,000

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Definitions:

Debt-Equity Ratio

The quotient representing a company's use of debt over equity, obtained by dividing its liabilities total by shareholder equity.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales with average total assets.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showing the profitability of a company.

Capital Intensity Ratio

A measure of how much capital is used in production compared to other factors like labor; high ratios suggest a reliance on physical assets and machinery.