The Opportunity Cost of Going to College Is

question 112

Multiple Choice

The opportunity cost of going to college is

• A) the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses.
• B) the value of the best opportunity a student gives up to attend college.
• C) zero for students who are fortunate enough to have all of their college expenses paid by someone else.
• D) zero, since a college education will allow a student to earn a larger income after graduation.

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Definitions:

Complements

Goods that are used together, where an increase in the demand for one leads to an increase in demand for the other.

Inferior Good

A type of good for which demand decreases as the income of the consumer increases.

Inferior Good

A type of good whose demand decreases when consumer incomes increase.

Normal Good

An item that sees a rise in desire when the income of buyers increases, and experiences a decline in demand when the income of buyers drops.