The Opportunity Cost for a Student of Attending College for a Year

question 215

Multiple Choice

The opportunity cost for a student of attending college for a year is measured by

• A)the benefit received by the student.
• B)the tuition paid for the year.
• C)the value of the most valued opportunity foregone by attending college.
• D)the total money outlays associated with attending college.

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Definitions:

Federal Income Taxes

Taxes levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities.

Defined Contribution Plans

Retirement plans in which the amount invested in the plan is defined, but the future benefit to be received is not.

401k Plan

A retirement savings plan sponsored by an employer allowing employees to save and invest a portion of their paycheck before taxes are taken out.

Payroll Taxes

Taxes that are taken out of employee's paychecks by the employer, including federal and state income taxes and Social Security and Medicare taxes.