Question

Instead of deciding to finish high school, you could have decided to work full-time. How would an economist explain your decision to receive your high school degree?
a. The benefit of working full-time was greater than the cost of going to high school.
b. The benefit of working full-time was greater than the benefit of going to high school.
c. The cost of working full-time was greater than the benefit of going to high school.
d. The cost of going to high school was greater than the benefit of working full-time.
e. The benefit of going to high school was greater than the benefit of working full-time.

Answer 1

Answer:

The correct answer is letter "E": The benefit of going to high school was greater than the benefit of working full-time.

Explanation:

Opportunity cost refers to the difference between choosing an option over another. It represents the benefit (if any) of the chosen option over the potential benefit obtained over the option that was forgone. In some cases represents what was "left on the table".

If choosing going to high school instead of working full-time, that implies, for that person, graduating provides a higher benefit than being paid monthly for a regular job.