### Opportunity Cost of College Education**Problem Statement:**1. Here are your costs if you decide to go to college. If you decide not to go to college, you can work and earn $20,000. What is your opportunity cost of going to college?| **Costs** | **Amount** ||-----------------|-------------|| Tuition | $10,000 || Books | $1,000 || Food | $500 || Parking Pass | $200 |**Options:**1. $11,7002. $31,7003. $30,0004. $31,200**Explanation:**To determine the opportunity cost of going to college, calculate the total direct costs associated with attending college and add the foregone earnings you give up by not working.**Total Costs of Attending College:**$ Tuition + Books + Food + Parking Pass = 10,000 + 1,000 + 500 + 200 = 11,700 $**Add Foregone Earnings:**$ 11,700 (Total College Costs) + 20,000 (Foregone Earnings) = 31,700 $So, the opportunity cost of going to college is:**Option 2: $31,700**

The value of alternative opportunities foregone and sacrificed to acquire one unit of a commodity is…

1. Here are your costs if you decide to go to college. If you decide not to go to college you can work and earn $20,000. What is your opportunity cost of going to college? Costs Tuition Books Food Parking Pass 1. $11.700 2. $31,700 3. $30,000 4. $31.200 Amount $10,000 $1,000 $500 $200

1. Here are your costs if you decide to go to college. If you decide not to go to college you can work and earn $20,000. What is your opportunity cost of going to college? Costs Tuition Books Food Parking Pass 1. $11.700 2. $31,700 3. $30,000 4. $31.200 Amount $10,000 $1,000 $500 $200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

### Opportunity Cost of College Education

**Problem Statement:**

1. Here are your costs if you decide to go to college. If you decide not to go to college, you can work and earn $20,000. What is your opportunity cost of going to college?

| **Costs** | **Amount** |
|-----------------|-------------|
| Tuition | $10,000 |
| Books | $1,000 |
| Food | $500 |
| Parking Pass | $200 |

**Options:**

1. $11,700
2. $31,700
3. $30,000
4. $31,200

**Explanation:**

To determine the opportunity cost of going to college, calculate the total direct costs associated with attending college and add the foregone earnings you give up by not working.

**Total Costs of Attending College:**

$ Tuition + Books + Food + Parking Pass = 10,000 + 1,000 + 500 + 200 = 11,700 $

**Add Foregone Earnings:**

$ 11,700 (Total College Costs) + 20,000 (Foregone Earnings) = 31,700 $

So, the opportunity cost of going to college is:

**Option 2: $31,700**

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