Briefly explain the concept of opportunity cost. What is the opportunity cost of attending college?
What will be an ideal response?
The opportunity cost of an action is the value of the next best alternative that a person has to give up when making a choice. The opportunity cost of attending college is what the college student would give up by going to school, such as the income she could have earned if she did not go to school.
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Some economists argue that
A) discretionary monetary policy is ineffective because of its long identification lag. B) discretionary fiscal policy is ineffective because of its long recognition lag. C) discretionary monetary policy is ineffective because of its long implementation lag. D) discretionary fiscal policy is ineffective because of its long implementation lag.
In a closed economy, public saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) T - G - TR B) Y - C - T + TR C) Y - G - T D) Y - C - T