10
practice testMultiple Choice

Practice Test

Question 10 • Personal Finance

What is an opportunity cost of education?

Answer
A
income not earned while studying
B
tuition
C
transportation
D
scholarships

Explanation

An opportunity cost is the value of the next-best option you give up when making a choice. While studying, a student may give up earnings from a job, so income not earned is an opportunity cost of education. Tuition and transportation are direct expenses, while scholarships help pay for education.

AI-written and checked against the verified answer.

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