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Principles of Macroeconomics

10/09/2020 Client: mmm78901 Deadline: 3 days

 


Week 1 - Discussion 1


99 unread replies.99 replies.


Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.


Opportunity Cost [WLO: 2] [CLO: 1]


As a high school player at St. Vincent–St. Mary High School, LeBron James was already one of the best basketball players in the country. He had been offered numerous scholarships and was considering attending college at Ohio State University, the University of North Carolina, Duke University, Michigan State University, or the University of Kentucky. But after graduating high school, James decided to directly enter the NBA because likely the opportunity cost of college was simply too high. He was selected by the Cleveland Cavaliers as the first pick in the 2003 NBA draft, signing a three-year contract worth almost $13 million, with an option for a fourth year at $5.8 million. Had he decided to attend college instead, James would have incurred an opportunity cost of at least $19 million in forgone income to earn a four-year college degree.


Based on LeBron James’s story, respond to the following components:



  • What is the opportunity cost? Define the opportunity cost in your words.

  • What was the opportunity cost for LeBron James when he determined to directly enter the NBA?

  • Would you have skipped college if your opportunity cost had been that high? Explain.


Your initial post should be a minimum of 300 words.

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