Question

The opportunity cost of going to college for a student receiving a scholarship is the risk of dropping out. a. is zero because she does not have to pay tuition. b. is the expenses for food and clothing that she purchases while in college. c. is the income that she would have earned if she did not go to college.d. is the risk of dropping out.

Answer 1

The correct answer is letter "C": The opportunity cost of going to college for a student receiving a scholarship is the income that she would have earned if she did not go to college.

Step-by-step explanation:

Opportunity cost is defined as the return of the option chosen over the return of the best next available option left behind. It is also described as the gain obtained from the option chosen in difference to the return that could have been obtained from the option forgone.

Thus, for students going to college thanks to scholarships, their opportunity cost represents the salary they could have earned by working instead of going to school.