Question

An economic explanation as to why individuals such as Bill Gates and LeBron James don't finish college is that:

a. the sunk cost of college is very high for them.
correct

b. the opportunity cost of college is very high for them.

c. the benefits of additional college exceed the costs of additional college for them.

d. the decision not to finish college is irrational.

Answer 1

The correct answer is b. the opportunity cost of college is very high for them.

Bill Gates and LeBron James are often cited as examples of individuals who did not complete college due to the high opportunity cost associated with their respective paths. In their cases, they found lucrative opportunities outside of college that allowed them to pursue their interests and achieve success. The potential earnings, fame, and experience they gained in their respective fields outweighed the potential benefits of completing a college degree. This economic reasoning suggests that the opportunity cost of continuing their education was higher than the potential benefits they would have gained from obtaining a degree.

Step-by-step explanation: