1. The two opportunity costs that affected the decision to study at LCC are the opportunity cost in terms of the returns foregone on the money spent in obtaining the degree and the value of time lost during the course which could have been put to the best alternative use. The returns foregone may be the interest earned had the money been invested in deposits and the time could have been used to do some job, in which case the value of the time is the wages foregone.

2. a. The expected benefits from studying at LCC would be the expectation of getting a higher paying job after getting the degree and may also lead to a formal sector job.

b. The covid 19 pandemic has led to some decrease in cost of obtaining the degree as the classes are now online and one may not have to pay boarding and mess fees additionally. The expected benefits may be less because the access to better jobs may be restricted due to less exposure and reduced availability of jobs.

3. The value of time is 8 euros per hour. If you take the two hour flight, the total cost (including both accounting as well as opportunity cost) will be 2×8 + 100 = 116 euros

If you take the 10 hours train, the total cost is 10×8 + 20 = 100 euros

Therefore, it is preferable to take the train to LCC.

4. Julia can read either 40 pages of Economics or 20 pages of psychology with all her time. The opportunity cost of reading each page of Economics is the number of pages of psychology given up reading during that time.