Some College Students Think That Because a College Degree Greatly

question 120

Multiple Choice

Some college students think that because a college degree greatly increases their earning potential there is no opportunity cost of attending college.How would an economist look at the matter?

• A)There is no opportunity cost, assuming that future earnings actually increase as expected.
• B)The opportunity cost is much less than it would appear, assuming that earnings increase.
• C)Opportunity cost is a meaningless concept in this situation.
• D)The college students are completely correct in all respects.
• E)There is still an opportunity cost, even if it is justified by higher future earnings.

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Definitions:

Electronics

Devices or systems that operate using the flow and control of electrons in semiconductors, vacuum tubes, or other components.

Computers

Electronic devices capable of executing programmed instructions for processing data, performing calculations, and managing information.

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The allocation of limited goods or services using prices, where higher prices curb demand to match the supply.