For a high school graduate, the opportunity cost of attending college is likely to be highest when:

• A. they have no alternative employment opportunities
• B. they receive a full scholarship to attend college
• C. they have a high-paying job offer available immediately after graduation
• D. college tuition and fees are heavily subsidized

Answer: (C)

Verified step by step guidance

1. Understand the concept of opportunity cost: it is the value of the next best alternative foregone when making a decision. In this context, it refers to what a high school graduate gives up by attending college instead of choosing another option.
2. Identify the alternatives to attending college: these could include working immediately after graduation, receiving a scholarship, or attending college with subsidized tuition.
3. Analyze each option's opportunity cost: if the graduate has no alternative employment, the opportunity cost is low because they are not giving up a job. If they receive a full scholarship or subsidized tuition, the monetary cost is reduced, lowering the opportunity cost.
4. Focus on the scenario where the graduate has a high-paying job offer immediately after graduation: attending college means giving up the income from this job, which represents a significant opportunity cost.
5. Conclude that the opportunity cost is highest when the graduate has a high-paying job offer available immediately after graduation, because the foregone earnings are substantial compared to other scenarios.