Question

Before you started applying for college, a job recruiter offered you a full-time cashier position at a local retail store earning an after-tax salary of $28,000 per year. However, you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including tuition, supplies, and additional housing expenses, is $35,000. You decide to go to college, probably because ?

Answer 1

Answer:

The correct answer is: Opportunity cost.

Explanation:

Opportunity cost is what a person sacrifices when they choose one option over another. Is the difference of the option forgone and the option taken. In the example, the cashier job offered represents an annual income of $28,000. However, the wage is unlikely to be raised and requires no specialization. For that reason, it is better to go to college because, after graduation and thanks to education, the opportunity to get a higher-payed job is greater.