Question

1. Misha likes studying the law and needs to decide between a career as a lawyer, a police

officer, or a paralegal. As a lawyer, Misha can expect to earn $120,000 a year working
fifty hours a week, but he will have to forgo six years of income while he is in school. As a
paralegal, Misha will earn $37,000 a year working forty hours per week Monday through
Friday, but he will only be able to work part-time, low-income jobs for the two years he will
be in school. As a police officer, Misha will earn $45,000 a year working about forty hours
a week. Though his schedule will be irregular and his job more dangerous, he can get his
education on thejob. If Misha decides to be a lawyer, which of the following can be seen as
an opportunity cost of this decision?
A. smaller income
B. irregular schedule
C. loss of income in the immediate future
D. There is no opportunity cost because he will earn more money.
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Answer 1

Answer: C. loss of income in the immediate future

Step-by-step explanation:

The Opportunity Cost of a decision refers to the alternatives we give up for any decisions that we make.

By deciding to become a lawyer, Misha would have to go to school for the next 6 years and therefore forego income he could have earned from one of the other careers for the same time period. This income is the opportunity cost as it is what he will have to give up in order to attend law school and become a lawyer.