The Opportunity Cost of Working Rather Than Going to School

question 44

Multiple Choice

The opportunity cost of working rather than going to school is

• A) the cost of food and housing.
• B) the cost of clothing and transportation.
• C) zero because the person is earning an income by working.
• D) the higher wages that come with additional education.
• E) the annual wages earned by working.

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Definitions:

Simple Rate Of Return

A metric used to evaluate the gain or loss on an investment relative to the amount invested, expressed as a percentage.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity level to meet short-term obligations and operations.

Annual Net Operating Cash Inflows

The total amount of money that flows into a business from its operational activities, after all operational expenses have been paid, over a one-year period.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of a business.