41.              Ellie decides to spend two hours taking a nap rather than attending her classes. Her opportunity cost of napping is

a.the value of the knowledge she would have received had she attended class.

b.the $24 she could have earned if she had worked at her job for those two hours.

c.the value of her nap less the value of attending class.

d.nothing, since she valued sleep more than attendance at class.

42.              Ed spends an hour studying instead of watching tv with his friends. The opportunity cost to him of studying is

a.the improvement in his grades from studying for the hour.

b.the improvement in his grades from studying minus the enjoyment of watching tv.

c.the enjoyment he would have received if he had watched tv with his friends.

d.zero. Since Ed chose to study rather than to watch tv, the value of studying must have been greater than the value of watching tv.

43.              For most students, the largest single cost of a college education is

a.the wages given up to attend school.

b.tuition, fees, and books.

c.room and board.

d.transportation, parking, and entertainment.

44.              The opportunity cost of going to college is

a.the total spent on food, clothing, books, transportation, tuition, lodging, and other expenses.

b.the value of the best opportunity a student gives up to attend college.

c.zero for students who are fortunate enough to have all of their college expenses paid by someone else.

d.zero, since a college education will allow a student to earn a larger income after graduation.

45.              Which of the following is not an example of the opportunity cost of going to school?

a.The money a student could have earned by working if he had not gone to college.

b.The nap a student could have enjoyed if he had not attended class.

c.The party a student could have enjoyed if he had not stayed in to study for his exam.

d.The money a student spends on rent for his apartment while attending school.

46.              For a college student who wishes to calculate the true costs of going to college, the costs of room and board

a.should be counted in full, regardless of the costs of eating and sleeping elsewhere.

b.should be counted only to the extent that they are more expensive at college than elsewhere.

c.usually exceed the opportunity cost of going to college.

d.plus the cost of tuition, equals the opportunity cost of going to college.

47.              When you calculate your true costs of going to college, what portion of your room-and-board expenses should be included?

a.Your full room-and-board expenses should always be included.

b.None of your room-and-board expenses should ever be included.

c.You should include only the amount by which your room-and-board expenses exceed the income you earn while attending college.

d.You should include only the amount by which your room-and-board expenses exceed the expenses for rent and food if you were not in college.

48.              Suppose after graduating from college you get a job working at a bank earning $30,000 per year.  After two years of working at the bank earning the same salary, you have an opportunity to enroll in a one-year graduate program that would require you to quit your job at the bank.  Which of the following should not be included in a calculation of your opportunity cost?

a.the cost of tuition and books to attend the graduate program

b.the $30,000 salary that you could have earned if you retained your job at the bank

c.the $45,000 salary that you will be able to earn after having completed your graduate program

d.the value of insurance coverage and other employee benefits you would have received if you retained your job at the bank

49.              For which of the following individuals would the opportunity cost of going to college be highest?

a.a promising young mathematician who will command a high salary once she earns her college degree

b.a student with average grades who has never held a job

c.a famous, highly-paid actor who wants to take time away from show business to finish college and earn a degree

d.a student who is the best player on his college basketball team, but who lacks the skills necessary to play professional basketball

50.              Maureen’s college raises the cost of room and board per semester.  This increase raises Maureen’s opportunity cost of attending college

a.even if the amount she would have to pay for room and board if she didn’t attend college rose by the same amount. An increase in opportunity cost reduces Maureen’s incentive to attend college.

b.even if the amount she would have to pay for room and board if she didn’t attend college rose by the same amount.  An increase in opportunity cost increases Maureen’s incentive to attend college.

c.only if the amount she would have to pay for room and board if she didn’t attend college rose by less than the increase in the amount her college charges.  An increase in opportunity cost reduces Maureen’s incentive to attend college.

d.only if the amount she would have to pay for room and board if she didn’t attend college rose by less than the increase in the amount her college charges.  An increase in opportunity cost increases Maureen’s incentive to attend college.