Rational Decision and Opportunity Cost

David is seventeen years old and is graduating high school a year early. He has already been accepted to his college of choice, but thinks that broadening his cultural horizons will help him in college. Which of these would be the BEST option for David to meet his goals?

• beginning college immediately in the fall

• starting out at a technical school then starting a four year college

• taking some time to travel before starting college to experience new cultures

• none

Josh can either attend a basketball game, a wrestling match or a concert. Suppose that Josh decides to attend the wrestling match and thinks to himself that if he did not go to the match he would go to the concert. The opportunity cost of attending the wrestling match is

Responses

• 
  going to the concert.

• going to the concert.

• three hours of time.

• going to the basketball game.

• going to the basketball game and the concert.

Susan has the option of purchasing one of three products: Brand A, Brand B, or Brand C. Each costs twenty dollars. If she decides that Brand A meets her needs best, then the opportunity cost of this decision is

• Brand A

• forty dollars.

• Brand A and Brand C

• • Brand B or Brand C depending on the value.

    Brand B or Brand C depending on the value.

  Check Answer

  
  

What is the opportunity cost of attending technical school versus attending a 4-year college or university?

Responses

• 
  

• There is no difference between the two choices.

• a party atmosphere versus having to live at home

• a broad education as opposed to learning a working trade

• Both choices are equal in earning power and job opportunities.

  Both choices are equal in earning power and job opportunities.

What is gained by immediately going to work after graduation instead of attending any post-secondary school?

• more free time

• money and experience

• long-range earning power

• more employment opportunities

After high school, graduates have a number of options other than immediately starting college. Bethany is going to graduate from high school this semester and currently works part time at a clothing store. She does not have a scholarship to her college of choice, and her parents are unable to help financially support her when she graduates. What option would financially benefit Bethany MOST if she wants to begin college a year after graduation?

Responses

• 
  

• After graduation, begin working full time, saving as much money as possible to support herself when she begins college.

• Travel for one year before starting school, so she will not have to spend money on travel while also paying for college.

• Find an internship in the field of her chosen college major, improving her chances of getting a job after college graduation.

• Take a "gap year" between high school graduation and the start of college, allowing her to refocus before beginning school again.

  Take a "gap year" between high school graduation and the start of college, allowing her to refocus before beginning school again.

Samuel has decided to wait one year after high school graduation to begin college. He thinks he might be interested in becoming a computer engineer, like his father, but is not completely sure. How could Samuel BEST spend his time before he begins college to ensure he chooses the most fitting college major for his goals?

Responses

• 
  

• He should travel the world, so he can decide where he wants to move after college graduation.

• He should spend time with friends and family, allowing him to refocus before beginning school again.

• He should work full time as a restaurant server, saving as much money as possible before starting school.

• He should intern where his father works, to determine if he is truly interested in computer engineering.

Many students choose to enter the military before attending college. What would be the opportunity cost of that choice?

Responses

• 
  

• age and experience

• a chance to see the world

• an opportunity to fight for one's country

• getting an advanced degree

What is the 2nd step in decision making?

• •Determine Criteria-the things we will use to distinguish their alternatives

• •Define the Problem

• •List Alternatives-the various options a person has for a given problem or situation

• •Evaluate the Alternatives

Kelly has just graduated from high school during which time she worked as a receptionist at a local salon. During this time Kelly's passion for working with people and hair design blossomed. Based on this which option may be the BEST fit for Kelly after high school?

• college

• gap year

• traveling

• internship