Which of the following are components of the opportunity cost of being a full-time student? The cost of:
What will be an ideal response?
• Tuition and books
The costs of tuition and books are part of the opportunity cost of being a full-time student because these expenses are paid only because the person is a student.
• Residence and a meal plan
The costs of residence and a meal plan are not part of the opportunity cost of being a full-time student because expenses for housing and meals would be paid, perhaps by the student or perhaps by his or her family, even if the person was not a student.
• A subscription to the New Yorker magazine
If the subscription was required by a class and the individual subscribed only because of the class requirement, then the cost of the subscription is an opportunity cost of being a student. However if the person would have subscribed to the New Yorker even if he or she was not a student, then the cost of the subscription is not an opportunity cost of being a student.
• The income a student will earn after graduating
The income earned after graduation is not an opportunity cost of being a student.
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