Opportunity Cost

4. There are no costs to some decisions. a. Yes b. No

b. No

2. If you borrow $500.00 from your brother, what is his opportunity cost? a. $500.00 b. There is no opportunity cost because you are repaying the loan. c. What he wants most costing $500

c. What he wants most costing $500

3. Opportunity cost is a. The value of the next best alternative. b. The dollar value of the item you give up. c. The value of all of the alternatives you did not choose.

a. The value of the next best alternative.

5. Saving part of my income costs me nothing. a. Yes b. No

b. No

1. The opportunity cost of attending college is: a. The things that could have been purchased with the income. b. Attending college is an investment in human capital so there is no opportunity cost. c. The things that could have been purchased with the money used to pay tuition and to buy books and other supplies. d. The things that could have been purchased with the income earned working and the things that could have been purchased with the money used to pay tuition and fees and to buy books and other supplies.

d. The things that could have been purchased with the income earned working and the things that could have been purchased with the money used to pay tuition and fees and to buy books and other supplies.