The Opportunity Cost of Taking a Semester-Long Economics Class Is

question 206

Multiple Choice

The opportunity cost of taking a semester-long economics class is

• A)the cost of tuition and fees only.
• B)the value of the time spent in the classroom.
• C)zero because there is no admission charged if you are enrolled in the course.
• D)equal to the highest value of an alternative use of the time and money spent on the class.
• E)the knowledge and enjoyment you receive from attending the class.

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Definitions:

Tax Liability

The total amount of tax that an individual or business owes to the government, based on their income or revenue.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the percentage of tax applied to your income for each tax bracket in which you qualify.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), showing the percentage of income or spending that goes to taxes.

Income Tax Liability

The amount of tax that an individual or entity is legally obligated to pay to a tax authority, based on their income.