The Higher the Opportunity Cost of Attending College

question 85

Multiple Choice

The higher the opportunity cost of attending college,

• A) the more likely an individual will go to college.
• B) the more economics classes an individual will take at college.
• C) the fewer economics classes an individual will take at college.
• D) the less likely an individual will go to college.

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Definitions:

Loanable Funds

The funds in financial systems available for borrowing, which consist of household saving, business saving, government budget surpluses, and bank loans.

Loan Period

is the duration over which a borrower is obligated to repay a loan, from the initiation of the loan to the final payment.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.

Rationing Function

The process through which prices distribute scarce goods and services among individuals who demand them, effectively limiting the quantity that consumers can purchase.