The opportunity cost of going to college is Select one: o a. the value of the be

Question

The opportunity cost of going to college is Select one: o a. the value of the best opportunity a student gives up to attend college O b. zero, since a college education will allow a student to earn a larger income after graduation. O c. the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses O d. zero for students who are fortunate enough to have all of their college expenses paid by someone else. Which two groups of decision makers are included in the circular flow diagram? Select one: O a. firms and government b. households and government c. households and firms od. markets and government

Explanation / Answer

The opportunity cost is the cost is the value of the next best alternative foregone in choosing a certain alternative. If a student gives up something to attend collage his opportunity cost is the value he couls not acquire while he choose college over that opportunity.

Therefore, the correct option is: (a)

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According to the circular flow in closed economy there are two sectors; households and firms. The household sells labor in the factor market and the firm sells goods at the goods market. The firm buys labor from the factor market and the cost of labor flows to the households as income. Similarly, firms sell goods at the goods market and the revenue flows as income to the firms.

Therefore, the correct option is: (c)

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