An Economic Explanation as to Why Individuals Such as Bill

question 60

Multiple Choice

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
• 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

---

Definitions:

Segmenting Variable

Characteristics of individuals or groups used to divide a market into segments for targeted marketing.

Pre-Qualified

The state of having been evaluated and deemed eligible for something, such as a loan or service, based on preliminary criteria.

Mass Affluent

Individuals with a significant amount of disposable income, though not wealthy by traditional standards, making them a target for certain luxury goods and financial services.

80/20 Rule

A theory that suggests that 20 percent of heavy users account for 80 percent of the total demand.