Suppose you are a freshmen in college and you have not declared a major. One rea
ID: 1138206 • Letter: S
Question
Suppose you are a freshmen in college and you have not declared a major. One reason you enrolled at your respective college was the school's vibrant social life. At the same time, you want to balance your academic life because you know that your grades will matter for graduate school or job applications You decide to forgo partying for two hours to study for an upcoming economics exam. In your first semester's Principles of Economics class, you learn that the enjoyment you would have received from partying is an example of a(n) While in class, you realize that there are more people in the classroom than there are seats. Across the hall, you notice a large, empty lecture hall and wonder why the university is not operating at Your economics professor is attempting to recruit more students to major in economics. She presents data showing that economics majors develop skills valuable in private industry, government, and research. She also argues that they earn a relatively higher income than other majors. Your professor is presenting you with in economics. to major You are assigned a final group project for your economics course. One member of your group is really good at finding resources for the project, one is really good at proofreading and editing, and you are really good at making a presentation. Based on this, you know that via did each part together. you can complete the project more efficiently than if you allExplanation / Answer
1. Opportunity cost. Opportunity cost is the value of an alternative action that is foregone. In this case the alternative action is partying for two hours.
2. Efficiency. The university is not using its resource optimally. In economics,efficiency means one entity cannot be made better off without making another entity worse off.
3. Incentive. Economic incentives are motivations to perform to achieve one's goal.
4. Specialization. Specialization in economies means peforming tasks in which one has a comparative advantage.