econ

College-age athletes who drop out of college to play professional sports

are well aware that their opportunity cost of attending college is very high.

Rational people make decisions at the margin by

comparing marginal costs and marginal benefits.

The property of society getting the most it can from its scarce resources is called

efficiency.

You go to the movieplex where movies ordinarily cost $9. You are intending to see a movie for which you have a $3 off coupon good for only that movie at that time. However, when you get there you see a friend who asks if you would rather see a new release. Both movies start and end at the same time. If you decide to see the new release with your friend, what is your opportunity cost?

the amount you value the first movie + $3

Tim decides to spend four hours playing video games rather than attending his classes. His opportunity cost of playing games is

the value of the knowledge he would have received had he attended his classes.

High-school athletes who skip college to become professional athletes

understand that the opportunity cost of attending college is very high.

In economics, the cost of something is

what you give up to get it.

The balance between efficiency and equality is an illustration of

​trade-offs.