The Opportunity Cost of Going to College or University for Four

question 85

Multiple Choice

The opportunity cost of going to college or university for four years is

• A)equal to the wage rate a person will earn after graduation.
• B)the least valued alternative one forfeits to attend.
• C)the cost of tuition and books and four years of lost wages from employment.
• D)the cost of tuition,residence fees and books.
• E)zero.

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Definitions:

Declared Preferred Dividends

Dividends announced by a company's board of directors to be paid on preferred shares.

Preemptive Right

A shareholder's right to maintain their proportional ownership in a company by buying a proportionate share of any new stock issues.

Common Shareholders

Individuals or entities that own common shares in a company, giving them voting rights and a share in the company's profits.

Proxy Right

A right granted to an individual or group to vote on behalf of another person, usually a shareholder, in corporate decisions and elections.