The opportunity cost of a student is____________?
Correct answer: C. What the student could have earned in the best job available by not studying
- A. Course fees and rent
- B. A loan from the bank
- C. What the student could have earned in the best job available by not studying
- D. What the student will earn after graduation
Explanation
Opportunity cost is the value of the best alternative forgone, so for a student it may be the income available from the best job they could have taken instead of studying. Fees and rent are explicit costs, not the full opportunity cost.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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