Question

Suppose your college institutes a new policy requiring you to pay for a permit to park your car in a campus parking lot. a. The cost of the parking permit is not part of the opportunity cost of attending college if you would not have to pay for parking otherwise. b. Only half of the cost of the parking permit is part of the opportunity cost of attending college. c. The cost of the parking permit is not part of the opportunity cost of attending college under any circumstances. d. The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise.

Answer 1

Answer:

d. The cost of the parking permit is part of the opportunity cost of attending college if you would not have to pay for parking otherwise.

Explanation:

Opportunity cost is a microeconomic concept used to describe how much an economic agent fails to earn in one economic activity by employing money in another economic activity. Thus, all expenses that a student performs to study at the university, including tuition, gasoline, parking, material, and time spent on the activity, is considered an opportunity cost, since all of this could be spent on another activity.