The Opportunity Cost of Going to University Is

question 124

Multiple Choice

The opportunity cost of going to university is:

• A)the total spent on food, clothing, books, transportation, tuition, lodging and other expenses
• B)zero for students who are fortunate enough to have all of their university expenses paid by someone else
• C)the value of the best opportunity a student gives up to attend university
• D)zero, since a university education will allow a student to earn a higher income after graduation

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Definitions:

U.S. GAAP

The Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting used in any jurisdiction, including the rules and standards for corporate financial reports.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.