Suppose You Have a Choice of Working Full-Time During the Summer

question 123

Multiple Choice

Suppose you have a choice of working full-time during the summer or going full-time to summer school.Summer tuition and books are $2,200.If you worked,you could make $7,000.Your rent is $1,000 for the summer,regardless of your choice.If these are the only relevant costs to consider,the opportunity cost of going to summer school is:​

• A)$2,200.
• B)$7,000.
• C)$8,000.
• D)$9,200.
• E)$10,200.

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Definitions:

Marginal Benefit

The extra advantage gained by using an additional unit of a product or service.

Producing

The act or process of creating goods or services by combining labor, materials, and technology.

Fifth Sweatshirt

Additional unit or item, indicative of a point in consumption where assessing marginal utility or other economic factors becomes relevant.

Ability-to-pay

A principle in taxation that states taxes should be levied on individuals or entities based on their ability to pay, which is often measured by income or wealth.