Alex received a four-year scholarship to State U. that covered tuition and fees, room and board, and books and supplies. If Alex becomes a full-time student, then:

Question

Lutz

Social Studies

28 November, 11:35

Alex received a four-year scholarship to State U. that covered tuition and fees, room and board, and books and supplies. If Alex becomes a full-time student, then:

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Answers (1)

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Maren Peterson · Answer 1

A the opportunity cost of attending State U includes the money Alex could have earned working for four years.

Explanation:

Since Alex will be a full-time student, it means that he will not be able to work. Thus the opportunity cost of Alex attending State U will include the money he would have made working for four years. Opportunity cost it the economic value of an alternative forgone, working and earning wages is an alternative Alex will forgo to study in State U.