A University Offers a Free Shuttle Service Around Campus

question 179

Multiple Choice

A university offers a free shuttle service around campus. What is the opportunity cost of the shuttle service equal to?

• A) the wages paid to the shuttle drivers, plus the gasoline expenses
• B) the wages paid to the shuttle drivers
• C) the highest valued alternative use of the resources devoted to the shuttle program
• D) zero, since it is free to students who want to ride

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Definitions:

E-service

Refers to electronic service, which is the provision of services via the internet or an electronic network.

Certified Mail

A mailing service that provides the sender with a receipt and confirmation that the mail was delivered to the recipient.

E-mail

Electronic mail, a method of exchanging messages between people using electronic devices.

Social Security Offices

Government facilities where individuals can apply for or manage Social Security benefits.