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Very talented high-school athletes who skip college to become professional athletes   obviously do not understand the value of a college education usually do so because they cannot get into college understand that the opportunity cost of attending college is very high are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes

Costs that cannot be avoided and should not be included in your marginal costs because they have already been incurred are known as differential costs opportunity costs transaction costs      sunk costs

All of these are examples of unintended consequences EXCEPT Seat belt laws cause drivers to drive faster An increase in taxes leads to a decrease in your income Drug enforcement leads to more crime Telling your child to stop causes them to do it more.

In a trade, one side may have an unfair advantage over the other. This is a result of Unintended consequences Asymmetric Information The free rider problem  Irrational behavior

All points on an indifference curve indicate 1. equal cost 2. equal utility 3. equal profit 4. equal income

If this game is played only once, then the most likely outcome is that   ABC charges a low price and QRS charges a high price ABC charges a high price and QRS charges a low price both firms charge a high price both firms charge a low price  

The theory of consumer choice examines how   consumers make utility-maximizing decisions wages are determined in competitive labor markets prices are determined in competitive goods markets firms make profit-maximizing decisions

Assume that the consumer depicted in the figure has an income of $20. The price of Skittles is $2 and the price of M&M’s is $4. The consumer’s optimal choice is point 1.  A. 2.  B. 3.  C. 4.  D.

If duopoly firms that are not colluding were able to successfully collude, then price and quantity would rise  price and quantity would fall price would rise and quantity would fall price would fall and quantity would rise

  The downward ­sloping line on the figure represents a consumer’s budget constraint. A consumer who chooses to spend all of her income could be at which point(s) on the figure?   Z only V, W, X, or Y only W, X, or Y only V only