Question

If your tuition is $25,000 this semester, your books cost $1,500, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes, and you make $15 per hour, and your room and board are $7,500 this semester (same as if not attending college), then your opportunity cost of attending college this semester is..."

a. $1,500.
b. $7,500.
c. $15,000.
d. $25,000.

Answer 1

None of the provided options is accurate.

The total opportunity cost of attending college is $31,000, including tuition, books, and lost earnings due to reduced work hours. None of the options provided in the question accurately represents this calculated amount.

Step-by-step explanation:

When calculating the opportunity cost of attending college, it's important to consider both the direct expenses and lost income. In this scenario, the tuition is $25,000, and additional costs for books total $1,500. However, because attending college reduces the ability to work full-time, there's a loss of income to consider.

If normally working 40 hours per week at $15 per hour, for 15 weeks, equates to $9,000 (40 hours x $15 x 15 weeks). When attending college, you can only work 20 hours, which means you'll earn $4,500 (20 hours x $15 x 15 weeks) during that period. The opportunity cost in lost earnings is the difference: $4,500 ($9,000 - $4,500).

Therefore, the total opportunity cost is the sum of tuition, book costs, and lost earnings, which equals $31,000 ($25,000 + $1,500 + $4,500).

The correct answer that incorporates these calculations is not listed among the options provided, hence none of the provided options (a. $1,500, b. $7,500, c. $15,000, d. $25,000) is accurate.