Suppose your expenses for this term are as follows: tuition: $5,000, room and board: $3,000, books and other educational supplies: $500. Further, during the term, you can only work part-time and earn $4,000 instead of your full-time salary of $10,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college?
Explanation: The opportunity cost of going to college this term is $7,000. This includes the direct costs of tuition, room and board, and books and other educational supplies, as well as the opportunity cost of lost earnings from working full-time.