Economics 2281 · O Level · Opportunity cost

Opportunity cost — practice question

A student chooses to begin a two-year apprenticeship, during which she will receive $10\,000$ each year. Once this has finished, she expects to earn $25\,000$ per year. Instead of doing the apprenticeship, she could accept an unskilled job that pays $16\,000$ per year. What is the opportunity cost over the two years spent completing the apprenticeship?

  • A$10\,000$
  • B$12\,000$
  • C$25\,000$
  • D$32\,000$

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